EUR/GBP: Two scenario; possible trade
In this analysis, Euro/Pound look bullish based my perspective what I see this market trap. And also, we can to ask if this it's a sell imminent, but not yet, this it's a market trap and also I will share some points here why Euro will go bullish in front of Pound.
Fundamental Analysis:
1) Euro and Pound rose against the safe haven Dollar on Monday, supported by a risk on sentiment across markets as investors digested positive eurozone data and looked to cash n on the strength of the U.S. Dollar
2) A survey showed on Monday that investors morale in the euro zone improved in November, and reflecting hopes that recent warmer temperatures and falling energy prices will prevent gas rationing on the continent this winter.
3) Germany should hike taxes on rich to finance relief packages.
4) Euro Zone investors morale up for first time since August 2022
Fundamentally, based this correlation with Euro and Sterling Pound, we see that investors seem to be some optimistic with eurozone data in the past week that ECB President Lagarde spoke. And also, Germany's economic advisory council will recommend the government raise taxes on the wealthy to help finance the multi-billion euro relief packages it has agreed to fight the energy crisis, What I think it's that German government may to raise taxes on rich to finance a multi-billion program to fight the energy crisis that whole Europe has since began of this year.
Technically, it's bullish for Euro. Now talking about technical analysis, we could to form a possible Shoulder Head Shoulder or Double Top?.
We see in this screenshot two possible scenario that I mentioned above, and EMA 200 make support exactly where the price make reaction. What in case if we get a Shoulder Head Shoulder (to be complete), we would need to valid this reaction point from $0.8738 GBP, if in case that fall and broke up, we can to watching a Double Top after of this validation to be complete. What it's very important to read the price action always.
Meanwhile, in Daily timeframe we see this perspective that Euro want to make a supply zone into this range, if we see, still bearish in this bearish channel, but it's not matter to keep watching what happen.
Good luck in this long position!!!
Fundamental Analysis:
1) Euro and Pound rose against the safe haven Dollar on Monday, supported by a risk on sentiment across markets as investors digested positive eurozone data and looked to cash n on the strength of the U.S. Dollar
2) A survey showed on Monday that investors morale in the euro zone improved in November, and reflecting hopes that recent warmer temperatures and falling energy prices will prevent gas rationing on the continent this winter.
3) Germany should hike taxes on rich to finance relief packages.
4) Euro Zone investors morale up for first time since August 2022
Fundamentally, based this correlation with Euro and Sterling Pound, we see that investors seem to be some optimistic with eurozone data in the past week that ECB President Lagarde spoke. And also, Germany's economic advisory council will recommend the government raise taxes on the wealthy to help finance the multi-billion euro relief packages it has agreed to fight the energy crisis, What I think it's that German government may to raise taxes on rich to finance a multi-billion program to fight the energy crisis that whole Europe has since began of this year.
Technically, it's bullish for Euro. Now talking about technical analysis, we could to form a possible Shoulder Head Shoulder or Double Top?.
We see in this screenshot two possible scenario that I mentioned above, and EMA 200 make support exactly where the price make reaction. What in case if we get a Shoulder Head Shoulder (to be complete), we would need to valid this reaction point from $0.8738 GBP, if in case that fall and broke up, we can to watching a Double Top after of this validation to be complete. What it's very important to read the price action always.
Meanwhile, in Daily timeframe we see this perspective that Euro want to make a supply zone into this range, if we see, still bearish in this bearish channel, but it's not matter to keep watching what happen.
Good luck in this long position!!!
Comment:
Be secure to revise your price vary in your broker, are not the same. For example: I put my Stop Loss a little down than my forecast Stop Loss, in instead of 0.8673 GBP. i put my SL to 0.8662 GBP. For tyipe of chart that I see in Prime XBT
