Hello everyone, as we all know the market action discounts everything :)
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The EUR/GBP heads higher on the last trading day of the week in the early European trading hours. The EUR/GBP is trading at 0.8564.
The EUR/GBP market has been having a good Bullish movement in the last 2 weeks as we see the price jumping from 0.8447 and hitting the 0.8587 mark.
The Main trend remains Bearish for the long term with no reversals yet.
A Tower bottom candlestick pattern has been seen in the last 4 days, which is usually a reversal pattern so we could be seeing this bullish push come to an end in the next few days.
Different Scenarios for the market :
Scenario 1 :
The market is trading at 0.8587 and could be headed near the first resistance level at 0.8592, If the reversal turns to be true then the Bulls will most likely lose control and the price will drop near the first support line where the Bulls will have a second chance to gain control back over the market but if they fail then we will certainly see the price going even lower and nearly hitting the ranges between 0.8533 and 0.8518.
Scenario 2 :
If the market was able to breakout from the first resistance level at 0.8592 it will give the Bulls the motivation to push the market even further and we most likely will see the market push up hitting the second resistance line at 0.8607 where a battle over control will happen and the outcome will determine the movement for the market for the next period of time.
Technical indicators show :
1) The market is above the 5 10 20 50 MA and EMA (Bullish short-term sign), but still below the 100 200 MA and EMA.
2) The MACD is above the 0 line showing a Bullish state in the market, With a positive crossover between the MACD line and the Signal line.
3) The ADX is at 19.15 and going up, soon it will hit 20 and the market will be trending, With a positive crossover between DI+ (23.40) and DI- (11.88).
Support & Resistance points :
support Resistance
1) 0.8555 1) 0.8592
2) 0.8533 2) 0.8607
3) 0.8518 3) 0.8628
Fundamental point of view :
The shared currency gathers momentum against the pound after the European Central Bank ( ECB) latest minutes of a meeting revealed that there was an extensive debate over the new guidance on interest rates and revisions to align with the board member's hawkish views.
Meanwhile, ECB Vice President Luis de Guindos signaled that the central bank could revise its macroeconomic projections again in September after recent upbeat business activity in Q3.
It is worth noting that S&P 500 Futures were trading down at 4,470 with 0.58% losses.
On the other hand, the British pound remained under pressure as the Brexit chaos continue to linger on the economy. A monthly reading of private-sector economic growth weakened to a six-month low as supply constraints dampened service and manufacturing sector recovery.
As for now, the market dynamics continue to influence the pair’s performance in the near future. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts and news for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The EUR/GBP heads higher on the last trading day of the week in the early European trading hours. The EUR/GBP is trading at 0.8564.
The EUR/GBP market has been having a good Bullish movement in the last 2 weeks as we see the price jumping from 0.8447 and hitting the 0.8587 mark.
The Main trend remains Bearish for the long term with no reversals yet.
A Tower bottom candlestick pattern has been seen in the last 4 days, which is usually a reversal pattern so we could be seeing this bullish push come to an end in the next few days.
Different Scenarios for the market :
Scenario 1 :
The market is trading at 0.8587 and could be headed near the first resistance level at 0.8592, If the reversal turns to be true then the Bulls will most likely lose control and the price will drop near the first support line where the Bulls will have a second chance to gain control back over the market but if they fail then we will certainly see the price going even lower and nearly hitting the ranges between 0.8533 and 0.8518.
Scenario 2 :
If the market was able to breakout from the first resistance level at 0.8592 it will give the Bulls the motivation to push the market even further and we most likely will see the market push up hitting the second resistance line at 0.8607 where a battle over control will happen and the outcome will determine the movement for the market for the next period of time.
Technical indicators show :
1) The market is above the 5 10 20 50 MA and EMA (Bullish short-term sign), but still below the 100 200 MA and EMA.
2) The MACD is above the 0 line showing a Bullish state in the market, With a positive crossover between the MACD line and the Signal line.
3) The ADX is at 19.15 and going up, soon it will hit 20 and the market will be trending, With a positive crossover between DI+ (23.40) and DI- (11.88).
Support & Resistance points :
support Resistance
1) 0.8555 1) 0.8592
2) 0.8533 2) 0.8607
3) 0.8518 3) 0.8628
Fundamental point of view :
The shared currency gathers momentum against the pound after the European Central Bank ( ECB) latest minutes of a meeting revealed that there was an extensive debate over the new guidance on interest rates and revisions to align with the board member's hawkish views.
Meanwhile, ECB Vice President Luis de Guindos signaled that the central bank could revise its macroeconomic projections again in September after recent upbeat business activity in Q3.
It is worth noting that S&P 500 Futures were trading down at 4,470 with 0.58% losses.
On the other hand, the British pound remained under pressure as the Brexit chaos continue to linger on the economy. A monthly reading of private-sector economic growth weakened to a six-month low as supply constraints dampened service and manufacturing sector recovery.
As for now, the market dynamics continue to influence the pair’s performance in the near future. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts and news for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading