By: Doug Rosen
Starting my analysis today on the EUR/GBP daily chart. Yesterday, as expected price met up with the 5 ema, reacted and dropped down just a bit.
At this moment price is a little bit away from the 5 ema, however, the 5 ema has much angle and separation from the 13 so momentum is quite strong and the 5 ema is pointing straight down and expect it will catch up to price. The lower Bollinger band is open and pointing down giving price permission to flow out the gate, we have a stochastic pointing down as well.
Moving on to the 4 hour weekly pivot chart I can see that price bounced off the M2 pivot and made two attempts to rise and on each attempt made contact with the 21 ema and was rejected both times. Price is currently in contact with the 13 ema and the 21 ema is falling.
On the 1 hour weekly pivot chart price has been bouncing off the S2 at 0.8600 and the 5, 13 and 21 ema's are clumped together and the 55 is drifting down. Price for the last few hours has been in a range and bouncing off a trend line, however, I expect the 55 ema to drift down then force price downward.
Finally on the 15 minute daily pivot chart price has been ranging and bouncing off the central pivot point at 0.8607. The upper Bollinger band is slightly open tot he upside and the 5 ema looks like it wants to head up and we have a stochastic pointing up.
At this time there is no evidence that this pair will so volatile today but if it heads up I don't expect it to go much higher than the 233 ema at 0.8623 then I would expect price to continue to head down.