EUR/GBP Made a Retracement

By: Doug Rosen

This pair has always been a technical observant pair and what I mean by that is that this pair always seems to follow the technical indicators. Go figure. It has made its retracement back up precisely to the 61.8 Fib Level which just happens to overlap with the Daily 233 and 21 ema's and the daily 21 looks like it is setting up to cross below the daily 233.



On the weekly chart we are up against the 5 and 55 ema's. Looking at the 4 Hour chart I see a reversal candle pattern at the 61.8 fib level, the 5 ema looks like it wants to roll over to the downside and the 55 ema appears as though it is trying to force price downward. I would also like to note that the 61.8 Fib level overlaps with the weekly M3 as well as the daily M3 and also happens to be a 50.0 fib level of last week's range. The hourly 5 ema has rolled over and crossed below the 233 and is beginning to cross below the 13 ema and the Stochastics was in the overbought zone and is now crossing downward into the trade zone. These are very bearish signs.



Looking at the 15 minute chart price is riding the 5 ema downward and momentum and speed appear to be picking up. The lower Bollinger Band has also opened up giving price permission to travel downward. As I write this price is about to hit the Daily Central Pivot Point so I do expect a reaction at this level and it could be a good opportunity to catch a pullback to short. There is a bit of overlapping support in the 0.8680 area but I wouldn't let that stop me from shorting. That is 25 Pips below the Daily Central Pivot and could give you the retest you may need to get into that short. If I was in a short on this pair I would expect it to find its way to 0.8664 then a bounce back up to 0.8679 then a possible re-load opportunity that could go to around 0.8640 area. 0.8690 area is up against a trendline so watch for a reaction or bounce in that area and maybe even wait for a break then a retest before entering that short.