By: Doug Rosen
The EUR/GBP starts out this new week with the weekly candle just under the 5 ema. It practically poked the 5 ema and it does overlap with a trend line. This zone also nearly coincides with a 38.2 fib of the recent swing down at .8617 on the weekly time frame.
The weekly 5 ema coincides with the daily 21 ema.
On the 4 hour time frame price has broken out of the nose of an apex to the upside. At 0.8612 exists the 144 ema which nearly coincides with the levels I just mentioned. At some point price has to retest back to the breakout are of the apex. I would expect the areas of resistance I just mentioned will be the catalyst of the retracement .8602 is last week's high and .8620 is the weekly M4 pivot point.
At the time I am analyzing this pair price is just above Fridays high at .8585 and the daily M4 is at .8604 On the hourly time frame price is riding above the ema's.
Taking a quick peek at the EUR/CHF Fridays high is at .2413 and that was the high for most of last week. Price looks like it wants to break this level. The GBP/CHF is at a 38.2 fib level at 1.4453 and this level overlaps with the 55 ema and an upper Bollinger band. If the GBP/CHF respects this fib and the EUR/CHF breaks above Fridays high this can spark bullish continuation for the EUR/GBP, otherwise, I expect this pair to respect the resistance it is under and retrace back to the breakout point around .8560 before continuing on up.