By: Doug Rosen
Looking at this pair today I cannot help but to think this pair really needs to continue up to around the 1.3900 area. We are still at extreme support levels of the Monthly Pivot Points and while looking at the US Dollar Index I see USD weakness.
In my EUR/GBP Analysis I noticed a lot of resistance that may force price down which would cause EUR Weakness. So with a weak USD and a weak EUR I need to ask myself if this is the pair I would want to trade today. I prefer pairing a strong currency with a weak currency. We are approaching a 38.2 Fib Retracement of the previous swing down with a 4 Hour 21 ema just above that fib level. Price is also just below the Hourly 55 ema and we are just below yesterday's high and it kind of looks double toppish.
The Stochastics on both the Hourly and 15 Minute charts are in the overbought zone as well. At this point, if I had to pick a side I would probably lean bearish, only because I see more resistance in the way than support. Consider taking shorts off the 1.3690 area if it reaches that level or wait for price to fall down to the Daily Central Pivot Point at 1.3622, then to Fib back up to around 1.3650 area then look to take a short with a 20 pip stop loss. Price could continue upward, but with all the ema's and Monthly Pivot Points in the way, longing this pair would be a bumpy road.
