By: Doug Rosen
Today's view of the EUR/GBP we appear to be in a period of consolidation. Yesterday, as I specified we were in a period of retracement. I think this retracement can continue all the way until 0.8690 area, however, I see some strong resistance zones in the 0.8640 area which could put an end to the retracement. At this time price is just below last month's low and just below yesterdays high and just below a fib level of last week's range.
The 4 Hour 21 ema is in this same price area just as the Hourly 55 ema as well as the 15 Minute 233 ema. Combining all this together we have a very strong area of confluence in the 0.8640 area that would most likely force price downward. On top of all that I mentioned 0.8652 is a Fib of the recent drop. So, with all this being said I would expect price to fall when it reaches the 0.8640 - 0.8650 area and I would consider a short. I would set a tight stop loss just above 0.8660 .
If price were to keep rising and I was to get stopped out, then I would wait for price to reach 0.8663 which is the Daily R1 Pivot Point which should force price down a bit to catch a pullback hopefully down to 0.8645 area then I would look for a long to take me to 0.8690 with a stop at around 0.8625.
