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EUR/GBP Bullish, Retracement Expected

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

This pair look like it will have a bullish week but at this moment looks like a mixed bag when comparing it to all the different time frames. Starting out with the weekly chart today I can already see ema crossovers. The 5 ema has begun to cross above the 13 and 21 ema's and the stochastic is pointing up. Price may need to come down just a bit to make contact with the ema's since there is some space between price and the ema's on the weekly chart so a fib down to the ema's could cause a bounce to keep this pair heading up.

EUR/GBP Weekly Chart 10/31/11

On the daily chart we have broken out of a price channel and we are also having some ema crossovers, however, the upper Bollinger Band is closed and pointing down and this bothers me a bit.

EUR/GBP Daily Chart 10/31/11

Taking a look at the 4 hour monthly pivot chart price is looking bearish and is heading down towards the M4 which overlaps with a 50.0 swing fib at 0.8751 and the 5 ema is pointing down and fixing to cross below the 13 ema and the stochastic is pointing down.

EUR/GBP 4 Hour Chart 10/31/11

Looking at the 1 hour weekly pivot chart we have bounced off the weekly central pivot overlapped with the 50.0 fib of the swing up, however, price has been riding the 13 ema down yet the hourly stochastic is pointing up.

EUR/GBP 1 Hour Chart 10/31/11

Finally, onto the 15 minute daily pivot chart price is riding the ema's down and price has already fallen below Fridays low and the stochastic is pointing down, however, the we are heading towards the 50.0 fib level overlapped with the S1. At this time, the GBP seems to be the currency with strength, however, this could change at any time. Watch for this change to happen between 0.8730 and 0.8750.

Doug Rosen
About Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.
 

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