By: Doug Rosen
Today EUR/GBP is at the bottom of the price trap it has been confined to since may. It is in the nose area of the apex and has breached support a few times but no clean breaks just yet. On the daily chart price is just under the 5 ema and the stochastics is pointing straight down and entering the oversold zone.
Moving on to the 4 hour chart price is just below the 21 ema, however, we are getting an ema crossover of the 5 crossing above the 13 and the upper Bollinger band is beginning to point up. The 38.2 fib level of this pair is at 0.8655 and this overlaps with the monthly central pivot at 0.8659 and the 4 hour 55 ema is just a few pips above.
I would expect a reaction in that area. Moving on to the hourly chart price is riding above the ema's and drifting up. The next level of resistance will be the weekly M1 at 0.8644 which overlaps with the hourly 144 ema.
A pullback will most likely occur then the next area I expect to see resistance will be at 0.8671 since this is the last weeks low and the 233 ema is intersecting with that level.
Finally, on the 15 minute chart we have a stochastic pointing up and the 5 ema is crossing the 13 to the upside, however, the daily M3 pivot which is a reversal pivot is right where price is at the moment. Areas to watch out for today will be 0.8665 since that area is saturated with a combination of ema's and pivot point levels over multiple time frames.