Never easy doing analysis on the EURGBP as you always have to take into account the third element of the USD.
However I was looking at it over the weekend as Theresa May inferred the UK leaving the "single market" as part of the BREXIT deal. I have no problem with that personally as all I see is politics on both sides interfering with what both sides want beneath the rhetoric and that is to continue healthy trade with each other. Just get on with it I say as business will always find a way to do business regardless of politics.
The EU is hardly in a healthy position when it comes for its finances . . . you could say it's essentially up the creek without a paddle and it's only "smoke and mirrors" keeping it from collapsing at the moment. The UK is not healthy either regardless of figures talking things up - a ticking time bomb in both camps unless some sensible people make some sensible decisions soon.
Back to EURGBP . . . I think the GBP has been hit rather badly and unnecessarily after the referendum with the EUR overvalued. Consequently I believe its real value is somewhere between .75 and .80
Looking at the daily chart I'm trying to see what everyone else sees and what would perhaps be a level to retrace to the above levels. The chart is self explanatory . . . I'm not big on "patterns" per se but it's hard to ignore the potential H&S combined with the FIBS from the June LOW to post referendum HIGH. It is a perfect fit for the pattern criteria to play out but time will tell if I'm just hissing in the wind with this opinion. PRICE is tinkering around the 100SMA daily which is the right shoulder and the pattern would really need to start playing out over the next few days.
Accordingly, I'm keeping my eyes on this one as it's easy to plot RR,STOP and TP targets.
However I was looking at it over the weekend as Theresa May inferred the UK leaving the "single market" as part of the BREXIT deal. I have no problem with that personally as all I see is politics on both sides interfering with what both sides want beneath the rhetoric and that is to continue healthy trade with each other. Just get on with it I say as business will always find a way to do business regardless of politics.
The EU is hardly in a healthy position when it comes for its finances . . . you could say it's essentially up the creek without a paddle and it's only "smoke and mirrors" keeping it from collapsing at the moment. The UK is not healthy either regardless of figures talking things up - a ticking time bomb in both camps unless some sensible people make some sensible decisions soon.
Back to EURGBP . . . I think the GBP has been hit rather badly and unnecessarily after the referendum with the EUR overvalued. Consequently I believe its real value is somewhere between .75 and .80
Looking at the daily chart I'm trying to see what everyone else sees and what would perhaps be a level to retrace to the above levels. The chart is self explanatory . . . I'm not big on "patterns" per se but it's hard to ignore the potential H&S combined with the FIBS from the June LOW to post referendum HIGH. It is a perfect fit for the pattern criteria to play out but time will tell if I'm just hissing in the wind with this opinion. PRICE is tinkering around the 100SMA daily which is the right shoulder and the pattern would really need to start playing out over the next few days.
Accordingly, I'm keeping my eyes on this one as it's easy to plot RR,STOP and TP targets.
Comment:
Not technically a "bearish engulfing" but with TM's speech out of the way and yesterday's spike higher neutralized nicely, PRICE is looking to a possible reversal and the H&S playing out . . . back on my radar . . . such an unloved pair when it comes to chartists but I like it :)
