Recap: The previous week has been very bullish with the pair showing strong movement on Monday, Tuesday and Wednesday after it broke out of the consolidation box on Monday. However on Thursday its upward momentum was stalled as it failed to break above 109.500. On Friday the price has touched the 109.500 level before it falls back towards the 109 level and close just above it.
Technical: On Thursday, the candlestick has formed a hanging man formation as price failed to push above 109.500. On Friday, a bearish candlestick was formed as the price make another rally upwards but get rejected off 109.500 before closing near its low at 109. The formation of hanging man and the subsequent bearish candles signal that the price will pullback to the next psychological level at 108.500. If 108.500 holds, the price will bounce back and continue its bullish moves upwards to retest the previous psychological level/high 109.500. On the Downside, if 108.500 is breached, the price would potentially continue its descent to the next psychological mark 108, which also coincides with the area of EMA 20.
Fundamentals: The pair has been bullish throughout the week due to positive US news and weakening GBP. The price failed to break above 109.500 despite positive GDP data. This might be sign that the buying power is fading or the buyer are resting before waiting for another push upwards. The upcoming news release will be the impetus to decide the direction of the pair. The extend of the pullback or whether is it a reversal will have to be determine by the news released on the upcoming weeks.
Verdict: Bullish. However price would pullback to 108.500 before continue its bullish movement upwards to 110. Pay attention to news released.
Technical: On Thursday, the candlestick has formed a hanging man formation as price failed to push above 109.500. On Friday, a bearish candlestick was formed as the price make another rally upwards but get rejected off 109.500 before closing near its low at 109. The formation of hanging man and the subsequent bearish candles signal that the price will pullback to the next psychological level at 108.500. If 108.500 holds, the price will bounce back and continue its bullish moves upwards to retest the previous psychological level/high 109.500. On the Downside, if 108.500 is breached, the price would potentially continue its descent to the next psychological mark 108, which also coincides with the area of EMA 20.
Fundamentals: The pair has been bullish throughout the week due to positive US news and weakening GBP. The price failed to break above 109.500 despite positive GDP data. This might be sign that the buying power is fading or the buyer are resting before waiting for another push upwards. The upcoming news release will be the impetus to decide the direction of the pair. The extend of the pullback or whether is it a reversal will have to be determine by the news released on the upcoming weeks.
Verdict: Bullish. However price would pullback to 108.500 before continue its bullish movement upwards to 110. Pay attention to news released.