EUR/GBP: We expect lower prices to be seen sometime this week.
Weekly TF.
We are literally only a few pips away from hitting weekly demand at 0.79631-0.78623. Last week we saw price form an indecision candle with both buyers and sellers applying equal pressure. As per this timeframe, we still see lower prices deeper into the aforementioned weekly demand area; however the lower timeframes may print a different story.
Daily TF.
A break south has been seen below daily demand at 0.78862-0.79206, price should be relatively free now to hit the next daily demand area below at 0.78117-0.78533, however, expect the possibility that price may rally to the 0.79751 area before hitting the aforementioned daily demand below. So, with this in mind the market could open up very bullish and fool a lot of traders into thinking a new trend is beginning just above the weekly demand area (see above for the levels), however we know the daily demand area at 0.78862 0.79206 has likely consumed the majority of the buyers, so price can drop south after the prospective rally higher.
4hr TF.
Price did exactly as expected; a push above the 4hr decision-point area at 0.79277-0.79170 to the 4hr S/R flip level directly above at 0.79358 was seen. All those traders with their stops set directly above the aforementioned 4hr decision-point area have now been stopped out only to see price go in the direction they originally planned for.
Theoretically, if our analysis is correct, there is very little stopping price from dropping like a rock this week other than the round number 0.79, a break below this area could possibly seal the deal for price to trade much lower towards the 4hr demand area below at 0.78602-0.78320.
Pending/P.A confirmation orders:
• New pending buy orders (Green line) are seen just above demand (0.78602-0.78320) at 0.78641. The reasoning behind setting a pending buy order here is due to its current location on the higher timeframes. Our 4hr demand area is just above daily demand at 0.78117-0.78533 and also just within the upper area of weekly demand at 0.76931-0.78623.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.
• Pending sell orders (Green line) are seen just below the supply area (0.79795-0.79684) at 0.79651. The reason for a pending sell order being set here, rather than a P.A confirmation sell order was because this area looks very hot for a first-time reaction. Notice how price faked above the S/R flip level at 0.79679 then dropped back down, there is very likely unfilled sell orders still lurking around this area, hence the need for a pending sell order.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 0.78641 (SL: 0.78288 TP: Dependent on price approach) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
• Areas to watch for sell orders: P.O: 0.79651 (SL: 0.79828 TP: Dependent on price approach) P.A.C: No P.A confirmation sell orders are seen in the current market environment.
We are literally only a few pips away from hitting weekly demand at 0.79631-0.78623. Last week we saw price form an indecision candle with both buyers and sellers applying equal pressure. As per this timeframe, we still see lower prices deeper into the aforementioned weekly demand area; however the lower timeframes may print a different story.
Daily TF.
A break south has been seen below daily demand at 0.78862-0.79206, price should be relatively free now to hit the next daily demand area below at 0.78117-0.78533, however, expect the possibility that price may rally to the 0.79751 area before hitting the aforementioned daily demand below. So, with this in mind the market could open up very bullish and fool a lot of traders into thinking a new trend is beginning just above the weekly demand area (see above for the levels), however we know the daily demand area at 0.78862 0.79206 has likely consumed the majority of the buyers, so price can drop south after the prospective rally higher.
4hr TF.
Price did exactly as expected; a push above the 4hr decision-point area at 0.79277-0.79170 to the 4hr S/R flip level directly above at 0.79358 was seen. All those traders with their stops set directly above the aforementioned 4hr decision-point area have now been stopped out only to see price go in the direction they originally planned for.
Theoretically, if our analysis is correct, there is very little stopping price from dropping like a rock this week other than the round number 0.79, a break below this area could possibly seal the deal for price to trade much lower towards the 4hr demand area below at 0.78602-0.78320.
Pending/P.A confirmation orders:
• New pending buy orders (Green line) are seen just above demand (0.78602-0.78320) at 0.78641. The reasoning behind setting a pending buy order here is due to its current location on the higher timeframes. Our 4hr demand area is just above daily demand at 0.78117-0.78533 and also just within the upper area of weekly demand at 0.76931-0.78623.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.
• Pending sell orders (Green line) are seen just below the supply area (0.79795-0.79684) at 0.79651. The reason for a pending sell order being set here, rather than a P.A confirmation sell order was because this area looks very hot for a first-time reaction. Notice how price faked above the S/R flip level at 0.79679 then dropped back down, there is very likely unfilled sell orders still lurking around this area, hence the need for a pending sell order.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 0.78641 (SL: 0.78288 TP: Dependent on price approach) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
• Areas to watch for sell orders: P.O: 0.79651 (SL: 0.79828 TP: Dependent on price approach) P.A.C: No P.A confirmation sell orders are seen in the current market environment.
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