Good day, dear investors and colleagues traders!
Comments last week:
Over the past 4 weeks, a clear trend has been observed in the euro / pound, during this time the currency pair has passed 245 points, but last week we did not see the strength of the bulls.
The currency pair corrected to 0.8800, where the local trend remained and from there it was able to develop an upward movement to 0.9050.
But the very structure of this growth and the activation of bears at 0.9050 suggests that at least the currency pair needs to lose some buyers and get closer to the lower boundary of the local trend. And as a maximum, the couple will probably draw a classic figure - “head and shoulders”.
In this case, we will need to monitor the lower boundary of the global trend, because otherwise, we can end the trend up.
The result of the past week: an increase of 32 points.
The result of the past month: an increase of 2
Technical analysis:
H1 (Technical) -H4 (indicative).
In our profile on Tradingview, we provide 3 options for the development of events for the current week:
1. The currency pair will continue to feel support at the level of 0.8980-0.8960, in which case the pair may rise to 0.9110
2. The currency pair will conduct consolidation in the same zone, however, the impulse growth that begins behind it will attract the attention of investors and in this case the currency pair will show us the classic "Head and Shoulders" figure.
3. The currency pair will continue to decline to the lower boundary of the local trend. Which is located at 0.8960, this decline will be restrained at this border and it will be able to develop potential to 0.9130
4. This scenario assumes that the currency pair continues to move to the lower boundary of the upward global trend.
Indicative analysis provides the following information:
1. Lack of oversold currency on 1-hour and 4-hour time frames (located in the neutral zone).
2. The price behavior indicator shows that the price has normalized with respect to its average 4-day trend (neutral zone).
Global variables:
• Volatility: Weekly = 61 points // Monthly = 79 points // Quarterly = 78 points.
• Trends:
55 - day SMA began to decline;
100 - day SMA continues to grow;
200 - day SMA began to decline;
• Range Ratio: 175 points (rise from 105 points).
Recommendations:
Use channel boundaries as potential entry points.
Regards to subscribers,
Wermelgion & Partners
Comments last week:
Over the past 4 weeks, a clear trend has been observed in the euro / pound, during this time the currency pair has passed 245 points, but last week we did not see the strength of the bulls.
The currency pair corrected to 0.8800, where the local trend remained and from there it was able to develop an upward movement to 0.9050.
But the very structure of this growth and the activation of bears at 0.9050 suggests that at least the currency pair needs to lose some buyers and get closer to the lower boundary of the local trend. And as a maximum, the couple will probably draw a classic figure - “head and shoulders”.
In this case, we will need to monitor the lower boundary of the global trend, because otherwise, we can end the trend up.
The result of the past week: an increase of 32 points.
The result of the past month: an increase of 2
Technical analysis:
H1 (Technical) -H4 (indicative).
In our profile on Tradingview, we provide 3 options for the development of events for the current week:
1. The currency pair will continue to feel support at the level of 0.8980-0.8960, in which case the pair may rise to 0.9110
2. The currency pair will conduct consolidation in the same zone, however, the impulse growth that begins behind it will attract the attention of investors and in this case the currency pair will show us the classic "Head and Shoulders" figure.
3. The currency pair will continue to decline to the lower boundary of the local trend. Which is located at 0.8960, this decline will be restrained at this border and it will be able to develop potential to 0.9130
4. This scenario assumes that the currency pair continues to move to the lower boundary of the upward global trend.
Indicative analysis provides the following information:
1. Lack of oversold currency on 1-hour and 4-hour time frames (located in the neutral zone).
2. The price behavior indicator shows that the price has normalized with respect to its average 4-day trend (neutral zone).
Global variables:
• Volatility: Weekly = 61 points // Monthly = 79 points // Quarterly = 78 points.
• Trends:
55 - day SMA began to decline;
100 - day SMA continues to grow;
200 - day SMA began to decline;
• Range Ratio: 175 points (rise from 105 points).
Recommendations:
Use channel boundaries as potential entry points.
Regards to subscribers,
Wermelgion & Partners