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EUR/GBP In Tight Range but Bearish

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

Beginning my analysis for this pair I start off today with the daily chart. Price has found its way back inside the trap it was in previously and price seems to be drifting down. The 5 ema has crossed below the 233, 21 and 13 ema's and the stochastic is falling. The next area of visual support on the daily chart is 0.8654.

EUR/GBP Daily Chart 10/26/11

Moving on to the 4 hour chart price is riding the 5 ema down and stochastic is falling. Price is currently in between the monthly R1 pivot point at 0.8697 and the M3 at 0.8667. Always keep in mind that I do plot the monthly pivot points on my 4 hour chart.

EUR/GBP 4 Hour Chart 10/26/11

Moving on to the 1 hour chart, also the chart I use to plot my weekly pivot points I see that price is also riding the 5 ema downward. Price is approaching the weekly M2 at 0.8683.

EUR/GBP 1 Hour Chart 10/26/11

Finally, I move on to the 15 minute chart and I see the same type of price action I been seeing on the other time frames for this pair, price is riding the 5 ema down. Price is below the daily central pivot point at 0.8695 and the next pivot level to the down side is the M2 at 0.8681 This pair maintains a bearish direction which means GBP strength over EUR weakness so keep this in mind when trading other pairs involving either of these two currency's.

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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