By: Doug Rosen
The EUR/GBP is definitely in a bullish state since yesterday. Taking a quick peak at the weekly chart it is evident that this pair had breached, retested and is now heading up and out of the price trap I had it in. Stochastic is pointing up and the 5 ema is giving price a lift.
On the daily chart we have some resistance in the form of the 55 and 144 ema's just above price with a stochastic pointing down. I can readjust my trend lines and when doing so it forms a perfect price channel on this daily chart.
If that is the case, and this becomes a respected channel then the 55 and 144 ema could force price down. These ema's are around 0.8730 area. Moving on to my 4 hour chart as well as my monthly pivot chart price as broken the 233 ema and is now retesting it and the upper Bollinger band is open and pointing up.
The nearest monthly pivot below price is the R1 at 0.8697 and the M4 is at 0.8751 with last month's high at 0.8745. Moving forward to the hourly chart as well as my weekly pivot chart price has breached and retested the weekly central pivot at 0.8721 and price is riding the 5 ema.
The 5 ema is sharply pointing up and has already crossed through the 233 ema. The upper Bollinger band is open and sharply pointing up as well. Stochastic is also in the trade zone and pointing up.
Finally, on the 15 minute chart as well as the daily pivot chart price has already broken above yesterdays high, retested and bounced off the 13 ema and is heading up. The closest pviot below price is the M3 at 0.8713 and above is the R1 at 0.8726 with yesterdays high at 0.8721.
On the GBP/CHF chart price is very range bound and on the EUR/CHF chart price is trending up so without a doubt, until proven otherwise, my bias for this pair is bullish.