Forex Trading Library

EURGBP – Holds Within a Bullish Channel Formation

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Monthly: Since posting large net losses in September 2017 (-395 pips), the cross has moved sideways. We can note spikes for the last 10 months highlighting indecision. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending. A large wedge formation offers a long-term bearish bias.

Weekly:  An area to note to the downside is 0.8380 (bespoke support). This is close to the 127.2% extension level of 0.8432 (from 0.9307-0.8619). We are trading in a bullish channel formation. Trendline resistance is located at 0.9009. This is in-between the 50 and 61.8% pullback levels of 0.8882 and 0.9045. For the last two weeks, we have posted Inside Harami candles highlighting indecision.

Daily: Yesterday’s price action left Marabuzo support at 0.8910. This is close to the bespoke support at 0.8913. The 161.8% extension level from the 0.8621-0.8842 is located at 0.8980, close to the previously mentioned trend line resistance. We look to get long.

 

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