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EUR/GBP Starting New Week on Support

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

The EUR/GBP begins the new week 80 pips below the weekly 5 ema and at the bottom of the Bollinger band. Price is however making its way down to a which has been respected as support and resistance a few times in the past I expect it to be respected again. It could possibly break the trend line it is approaching after a retest, however, just below the trend line is a 233 ema that is sure to be respected especially with this pair. This pair has really been tanking a lot lately and the overall sentiment has been bearish I am thinking that soon the market will have to finally make a correction back up to the upside and give price the chance to tap the 5 ema so it can continue to fall further but with so many bears in the market profit taking can cause large rally's. Price could even retrace as high as the 144 ema. The stochastics is also in the oversold zone.

EUR/GBP Weekly 12/19/11

On the daily time frame the stochastics is also in the oversold zone and price continues to look bearish as it is riding the 5 ema down. Price does not have to retrace.

EUR/GBP Daily 12/19/11

Moving on to my 4 hour time frame and naked chart I have price in a nice little triangle trap and we will see which way it will break. The bottom has already been tapped 7 times and only twice up top and we are beginning to have higher lows it wouldn't surprise me if price breaks the trap to the upside. The bottom of the trap coincides with the monthly S2 at around .8390

EUR/GBP 4 hour 12/19/11

On the hourly time frame I see price is consolidating and is gradually making higher lows but not higher highs and is looking bearish.

EUR/GBP 1 Hour 12/19/11

Finally, on the 15 minute time frame price continues to look bearish. We will have to keep an eye on the price trap and see which way this pair goes.

Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

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