By: Doug Rosen
I am looking at the EUR/GBP today and I cannot help but to think GBP strength. Looking at the 4 Hour chart we are at the 38.2 Fib zone of the recent fall for this pair, overlapped with the 55 and 144 emas just above price. Also note that the upper Bollinger band is pointing downward.
Taking a glance at the 1 Hour chart I am also noticing that the upper Bollinger Band is pointing downward, price recently touched the 233 ema, the 5 ema looks like it wants to rollover and the candles are showing a reversal pattern.
Glancing at the 15 Minute chart I see Stochastics has crossed to the downside from the overbought zone and the 5 ema is crossing through the 13 and beginning to look bearish. Taking all this into consideration I now want to point out that price is up against the monthly Central Pivot Point 0.8790, the weekly Central Pivot Point of 0.8793. At this time we are just above the daily Central Pivot Point 0.8776 and I will wait it out to see if we bust through it. If we were to bust it I would expect a bounce off the 0.8765 level then to head back up to the CPVP of 0.8776 to take a short on this pair. I would set my stop at around 0.8795 or optionally just above the psychological level of 0.8800 and set my profit target at 0.8750 area which is the daily and weekly M2 area.
