By: Doug Rosen
Of course yesterday was a dead day for this pair and most pairs for that matter. Yesterday's range for the EUR/GBP was only 27 pips. But then again, nobody was trading so how could it have moved? As of this hour price has already gone above yesterday's high and is heading to either the 38.2 fib of the previous swing down at .8402 which is overlapped with the 13 ema or it will struggle it out a bit and continue up to the 50.0 fib perfectly overlapped with the 21 ema at .8432 which also happens to be the monthly M1 pivot point.
Moving on to the 4 hour timeframe it is very obvious we have broken the dull range we had been in as of yesterday and heading to the upside. Not too far above current price action is the 55 ema which of course will start a rumble with price action as it tries to head up. In the last couple hours price has broken above the weekly central pivot at .8362 and is bouncing down off a fib retracement from last week's range (see Doug's Matrix) and will swing fib back down to the weekly central pivot at .8362 which happens to be overlapped with the 144 and 21 ema then without a doubt will continue on up until it gets to the hourly 233 ema at around .8384 then of course another fib will occur from the 233 ema giving traders an opportunity to join the party to the upside until this pair makes it to .8432.
Currently price has already broken above the R1 daily pivot point and has already retraced back to it and is now heading back up. I am reminding you all once again until you are all used to it that I have provided a table of levels for you all to monitor. We will call it Doug's Matrix appropriately since it is of my own design and my name is Doug. It is simply a table that displays every pivot point from the monthly all the way down to the 15 minute, however, by the time you view it the 15 minute and hourly data will already be expired but I do recommend keeping an eye on all the other levels.
In addition to the Pivot Point levels I have provided the Fib retracements and extensions of the previous candles also over the monthly to 15 minute timeframes but the same thing applies, pay attention mostly to the monthly to the 4 hour since the hourly and 15 minute will be expired. The 4 hour pivot and fib levels are good until 10:00 AM GMT. The levels indicated in Doug's Matrix will keep you out of danger and put you into profitable opportunities.
