ICmarkets

EUR/GBP: Technical outlook and review.

FX:EURGBP   Euro Fx/British Pound
24 2 1
4hr TF.

The higher-timeframe picture resembles the following:

• Weekly TF: Two weeks ago a spike/wick was seen just above the weekly decision-point area at 0.80328-0.79780, indicating that some of the sellers around this area have been consumed, which also likely means price is now free to hit the weekly supply area above at 0.81397-0.80809.

• Daily TF: The same spike/wick seen on the weekly timeframe , is exactly the same on this timeframe (above daily supply at 0.80328-0.80024), meaning the path north is likely clear now up to the daily S/R flip level at 0.80809 (the lower base of the weekly timeframe supply area - see above), however before price can be pushed higher, pro money will need sell orders to buy into, and at the moment this does not seem to be the case. A decline in value may well be seen down to the next fresh daily demand area at 0.78117-0.78533 which is nicely located within the weekly demand area at 0.76931-0.78623.

Temporary 4hr support is currently being seen around the 0.79533 level. A push up from here landed the buyers straight into an area of 4hr supply (0.79778-0.79664) where we expected active sellers to be waiting, which seems to be the case at the moment.

If a break above the aforementioned 4hr supply area is seen, price will likely fill the gap, and maybe then trade up to a sexy-looking 4hr supply area at 0.80151-0.80085, the round number 0.8 below this area will likely be faked past in order to reach true supply, so be aware of this if anyone is thinking of shorting this round number if/when price reaches this level. However, if we see a break below temporary 4hr support at 0.79533, things will get interesting, the path south looks relatively clear down to at least the 4hr decision-point level at 0.79189, but what really takes our fancy is the 4hr demand area below at 0.79037-0.79139 (pending buy order set just above at 0.79155) since from this area, the buyers consumed sellers not only around the high 0.79385, but also the high 0.79795 (marked with arrows) making this area a juicy one indeed!

Pending/P.A confirmation levels:

• New pending buy orders (Green line) are seen just above 4hr demand (0.79037-0.79139) at 0.79155. The reason we have placed a pending buy order here is simply because the buyers consumed sellers not only around the high 0.79385, but also the high 0.79795 (marked with arrows) making this area a juicy one indeed!
• P.A confirmation buy levels (Red line) are seen just above a 4hr decision-point level (0.79189) at 0.79215. The reason for setting a P.A confirmation buy level, and not a pending buy order is simply because this level has seen a touch already indicating some of the buyers may have been consumed, thus weakening this area, hence the need for confirmation on this one.

• No Pending sell orders (Green line) are seen are seen in the current market environment.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: 0.79155 SL: 0.78953 TP: Dependent on how price approaches). P.A.C: 0.79215 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: No P.A confirmation sell levels are seen in the current market environment.
JohnTaylor
2 years ago
Wont bother with my chart much the same nice one IC jt
Reply
ICmarkets PRO JohnTaylor
2 years ago
Hi JT, thank you for the comment, this pair is moving very nicely at the moment!
Reply
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