Summary
With inflation not improving much since the end of last year within the Eurozone, the ECB didn’t take much steps to removing the current QE program but will instead extend the program from April until the end of the year. This will be done at a decreased rate of 60 billion euros from 80 billion euros. Also having had the House of Lords overturn the amendments to the Brexit bill, we could see it taking a little longer for it to become law. This will therefore only allow Theresa May to trigger article 50 when the House of Lords accepts the House of Commons’ decision. Pound bulls will then look for opportunities to squeeze in their longs in the meantime with knowledge that Theresa May might suddenly announce the trigger of Article 50.

EurGbp Daily Chart

Price managed to achieve an aggressive bull target of MR2 after opening at the Monthly Pivot Point at the beginning of the month. With overbought stochastic and according to pivot point theory, we might see price retracing down towards the Monthly pivot with a key level of support eyed at 0.86500 for a retest at the role reversal.

EurGbp H4 Chart

Price opened at WM3 at the beginning of the week with the weekly bear target being WM1. Even though the market action moving averages show a bullish sentiment and also with an oversold stochastic, I am expecting price to make a lower high around the 0.8750 level and continue to move down towards the weekly bear target.

EurGbp H1 Chart

Price is currently within the bull buy zone after having came off support at 0.87142. Market action moving averages have converged and are flat, a retest at the role reversal which coincides with DM3 and a psych level of 0.87500 is where I will be looking to sell.

2 thoughts on “EurGbp Short Technical Setup”

  1. Nils Heine says:

    hi,
    may i ask you a question?:)

    which indicator marks the green and red fields?

    1. Tsholanang Tsholanang says:

      Hey Nils, the green and pink/red fields are manually draw them in to identify support and resistance levels. The green being support and pink resistance. I use the rectangle on the platform’s tool bar.

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