By: Doug Rosen
The EUR/GBP starts out the new week in what I refer to as 'No Man's Land.' This means price is not up against resistance or down against support but in the middle. Of course, this is based on the weekly timeframe. Last week this pair dropped all the way down to the weekly 233 ema which is an area no doubt profit taking will occur, and I did sway that price would land on the 233 ema and bounce and sure enough it did, in fact, since it landed on the 233 ema price has gone up 62 pips which is a big move for this pair.
On the daily timeframe price is now above the daily 5 ema and appears to be heading on up. I expect price is going to make at least a 50.0 fib around .8432 then to head back down. At this time the 50.0 fib is just below the 21 ema's but by the time price was to reach the 50.0 fib level the 21 ema will have been dragged down to that level causing some overlap in that area.
On the 4 hour timeframe price is back above the trend line it was previously below, further confirmation price is going up. The 4 hour 5 ema has crossed above the 13 and 21 ema's and the upper Bollinger band is beginning to open a bit to the upside.
On the hourly timeframe I have noticed that price is approaching an area of resistance at .8376 which will surely be a strong resistance area since it has previously been support. The hourly 233 ema is at .8390 and the weekly M3 pivot is at .8392 so price will not go through that zone without a fight.
So if you looking to take a long, do not do it at that level. I will remind 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 called it Doug's Matrix 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.
