By: Doug Rosen
Beginning my analysis today with the EUR/GBP weekly chart I see that price is now approaching the 144 ema and the 5 ema is heading down and is building up angle and separation from the other ema's. The lower Bollinger band is open and pointing down and the stochastics is in the trade zone pointing down. I expect that price will touch the 144 ema and bounce up a bit and make contact with the 5 ema then head down further most likely breaking the 144 ema. Taking a quick glance at the EUR/CHF and GBP/CHF it is obvious that both pairs are in fact bullish, however, it seems the GBP/CHF is beating the CHF a little harder than the EUR so this could indicate a strong GBP over the EUR.
Moving on to the daily chart I can see that price is approaching the bottom of the range at 0.8527 which is strong visual support that has been respected a few times previously and has served as resistance so I expect a bounce at the 0.8527 level which will more than likely force price to retrace back up to the daily 5 ema and head back down and possibly break the range or reverse and head back up.
Moving onward to the 4 hour chart price has been progressively riding the 5 ema downward and the lower Bollinger band is open and pointing down. Price is currently below the monthly M2 pivot and the next area of support I see is the October low at 0.8529 which coincides with the visual support I pointed out at 0.8527.
Moving on to the hourly chart I can see that price is riding the 5 ema down as well but is approaching support which happens to be last week's low at 0.8561 and if broken I expect it to go to the weekly S1 at 0.8852 then pull back up a bit, possibly as high as 0.8578 then continue down to 0.8527 where once again I will expect a bounce then a break or possibly a reversal.
