ICmarkets

EUR/GBP Technical outlook and review.

FX:EURGBP   Euro / British Pound
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Weekly Timeframe: The weekly timeframe shows price is currently trading within a monster weekly demand area at 0.76931-0.78623. Does this mean we should be preparing ourselves for a rally in price?

Daily Timeframe: Last week showed there was clear buying interest around the daily demand area at 0.77507-0.77772. Be that as it may, the only way in our opinion to find out if this buying was legit, and not just traders liquidating their short positions, would be to see price close above the 0.78729 level, and as a result this would likely also confirm buying strength from the weekly demand area mentioned above at 0.76931-0.78623.

4hr Timeframe: Buy orders (0.78221) have already been filled around the 4hr resistance flip level at 0.78195, and as a result a rally higher in price followed. Potential selling opposition has already likely been consumed around the 0.78439 level (marked in pink).With that in mind, the path north is very likely clear up to at least the 4hr Quasimodo resistance level seen at 0.78777 (lines up beautifully with the daily support flip level at 0.78729), which would make a fantastic take-profit area for anyone long now, where we believe there to be active sellers waiting just below at 0.78754.

However, In the event that a break below the 0.78195 level is seen, we can very likely expect price to hit a combined 4hr decision-point/round number area at 0.77891-0.77982/0.78, where buy orders are likely set just above at 0.78026).

Buy/sell levels:

• Buy orders: 0.78026 (Predicative stop-loss orders seen at: 0.77865).

• Sell orders: 0.78754 (Predicative stop-loss orders seen at: 0.78909).
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Hi ICCM thanks again for your astute analysis, its appreciated. However what do you think about .7030 as a "final" destination ?
Reply
Hi pezq,

That's a beautiful flip level there I see. However, that is such a long way off, and there are far more near-term demand areas that will have to be consumed before this levels hits. For instance we have to see that monster weekly demand area (0.76931-0.78623) taken out first buddy, but as an overall destination, it could well be.

Good luck with your trading.

IC
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