By: Doug Rosen
I will begin my analysis today for the EUR/GBP taking a quick look at the weekly time frame. The weekly is very interesting to me since price is currently caught precisely in between the weekly 5 ema and the 144 ema. This zone seems to cover around 40 pips. Price recently broke out of the confines of the price trap it was in and the 5 ema has drifted outside of the price trap. The 5 ema is heading down and at some point it will crunch price down into the 144 ema and most likely forced it down.
On the daily time frame price has been very bearish until now but has just touched down to what has been a strong support zone around .8520. The daily 5 ema is pointing down and is closing in on price and I would like to see if the daily 5 ema pushes price below .8500. Price is heading down lower and lower, price has already broken last week's low at .8544 and is approaching last month's low of .8529.
On the 4 hour time frame price is riding down along the ema's as it is on the hourly time frame.
On the 15 minute time frame price seems to be making a fib from yesterday's drop and the 38.2 fib level coincides with the daily central pivot point and the 144 ema seems to be in that vicinity. I would watch for price to head up to .8558 then I would be looking to take a short and set my stop loss around .8580 at the most.