ICmarkets

EUR/GBP: Weekly technical outlook and review.

FX:EURGBP   Euro Fx/British Pound
29 0 1
Weekly TF.

Some serious buying pressure was seen last week, as price is now seen trading deeper within weekly supply at 0.80328-0.79780. One can only imagine the amount of buying pressure sitting around the weekly demand area below at 0.79631-0.78623, since price has not even touched this area yet, and higher prices are being seen! If a close above the aforementioned weekly supply area happens, prices could well be forced to hit the weekly supply area above at 0.81397-0.80805.

Daily TF.

Clearly there are still active buyers around the weak-looking daily demand area at 0.78862-0.79206, as price has been aggressively pushed north. Early this week, we expect a battle between the buyers and sellers around the daily supply area at 0.80328-0.80024. This area remains very important in our opinion, if a break above is seen, price will be relatively free to hit a daily supply area at 0.81515-0.81145, and also this will likely confirm buying strength from around the weekly demand area at 0.79631-0.78623. However if we see a bearish reaction around the daily supply area at 0.80328-0.80024, we could very well see some serious selling past the daily demand area at 0.78862-0.79206 into the daily demand area below at 0.78117-0.78533 sometime soon, which will effectively bring us into heavy weekly demand at 0.76931-0.78623.

4hr TF.

A break above the 4hr supply area at 0.79837-0.79713 has been seen with price closing the week at 0.79909, just 10 pips under the big figure 0.8!

The 4hr supply area at 0.80264-0.80133 above is looking red hot for a reaction sometime this week, here’s why: This area is not only located within daily supply at 0.80328-0.80024, but also deep within a recognized weekly decision-point area at 0.80328-0.79780. Take a look at what is looming just below this area; it’s a humongous psychological level (0.8). Pro money know, well in fact nearly everyone knows this level attracts a ton of attention, meaning lots of sell, and breakout buy orders will be set there, one can just feel the magnetic pressure!!! Pro money may buy hard into the round number level and push towards the 4hr supply area above at 0.80264-0.80133. This move will very likely give pro money enough liquidity for a nice sell off (Buy orders from the traders attempting to fade the round number, and again buy orders from the breakout buyers all for pro money to sell into).

Will this push up be seen early this week? this is something we are not sure of, as last week saw some very aggressive buying, and traders will still be likely cashing in on their positions especially as price is now so near to the aforementioned round number, another thing to be aware of is that pro money may not have the liquidity for the big push up that was just discussed, so they may need to sell to gain more liquidity, in this case it would be sell orders to buy into. We are going to be patiently watching two areas of 4hr demand, the first, being the lowest at 0.79232-0.79361, and just above at 0.79615-0.79704 for a reaction north if price has yet to push above the round number 0.8.




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