By: Doug Rosen
Yesterday this pair made a big leap, of course it had very little to do with the technicals and had everything to do with the fundamentals. Today and the rest of this week I expect trading to be a bit thinner than usual since usually after a huge move and yesterday was a huge move the market usually consolidates a bit, goes into range mode and regroups itself and this week is the week of the Non-Farm Payroll, and it is important because it is the last one for this year. Many traders and investors out there will be trading lightly until the report is released. Topping it all off, we are now in the month of December, a very popular month for bankers and hedge fund managers to take their vacations.
Today the EUR/GBP is highly correlated with the EUR/USD, GBP/USD and the USD/CHF. So, while doing your analysis for the EUR/GBP be sure to study the correlating pairs as well.
On the weekly time frame price has risen to nearly the 5 ema and up against the bottom of the apex this pair had been previously trapped in. This area can be strong resistance but still easily penetrable. On the daily time frame price is up against the 13 ema and the stochastics is pointing down, this can be very bearish as well.
Moving on to the 4 hour time frame price is caught in a price trap and is nearing the top. What is interesting about this trap is I think it will be broken to the upside due to the higher lows I am seeing especially on the lower time frames. The 5 ema is crossing above the 13 ema and the stochastics is pointing up.
On the hourly time frame price is gracefully riding up the 5 ema and the upper Bollinger band is pointing up and wide open.
Finally on the 15 minute time frame price is riding the 21 ema. Current price is at .8575 and the next areas of resistance is yesterdays high which was .8590 and the weekly central pivot point is also at .8590 and the monthly M3 is at .8612
