Thursday, January 19, 2017 8:10:18 AM
The daily chart of EUR/GBP currency pair 19.01.2017.
General analysis
After a substantial decline on Monday 17/01/17 Currency EUR / GBP pair is back in the frame of the price channel 0.8700 - 0.8340 and yesterday's daily candle closed below this level. Movement on Tuesday was about 170 points and was due to the overall growth of the British currency. The price of the British pound was also increased against all major quotations.
So far it is difficult to assert unambiguously about the role of level 0.8700 will it be a significant obstacle for the price for the price or not. But in the case of back-testing of it from the inside of the channel and rebound from it traders will be good reason to play on the slide.
Comparing the Stochastic indicator chart with price graph we can see a clear divergence which was formed last Friday. Such trading signal on the daily chart and with and rising market it is quite strong signal to sell Euro and it cannot be ignored.
Signal lines of Stochastic indicator has been crossed and demonstrates a clear buy signal.
Next few days
Considering the overall situation in the market for the Euro and price closeness to a significant resistance level at 0.8700 and the presence of divergence in the graph we have all the signals for the opening of sales for EUR/GBP.
The general trend is still increasing but today there is the most favorable situation to play on the rollback of the price.
During this week, we are likely to see a decrease to at least 0.8575 or even further to 0.8500.
We recommend to open sell position on EUR/GBP if the price goes below than 0.8650 with a target points for profit taking at 0.8575. Orders S/L we need to set up at 30-50 points above the enter point.
This article is provided in the form of recommendations for trading and SuperForex Company is not responsible for the result of transactions made by you based on this analysis.
Please be aware that CFD and FX trading on margin carry high levels of risk. Traders should ensure they understand the risks associated with leveraged CFD and FX trading before deciding to trade.
General analysis
After a substantial decline on Monday 17/01/17 Currency EUR / GBP pair is back in the frame of the price channel 0.8700 - 0.8340 and yesterday's daily candle closed below this level. Movement on Tuesday was about 170 points and was due to the overall growth of the British currency. The price of the British pound was also increased against all major quotations.
So far it is difficult to assert unambiguously about the role of level 0.8700 will it be a significant obstacle for the price for the price or not. But in the case of back-testing of it from the inside of the channel and rebound from it traders will be good reason to play on the slide.
Comparing the Stochastic indicator chart with price graph we can see a clear divergence which was formed last Friday. Such trading signal on the daily chart and with and rising market it is quite strong signal to sell Euro and it cannot be ignored.
Signal lines of Stochastic indicator has been crossed and demonstrates a clear buy signal.
Next few days
Considering the overall situation in the market for the Euro and price closeness to a significant resistance level at 0.8700 and the presence of divergence in the graph we have all the signals for the opening of sales for EUR/GBP.
The general trend is still increasing but today there is the most favorable situation to play on the rollback of the price.
During this week, we are likely to see a decrease to at least 0.8575 or even further to 0.8500.
We recommend to open sell position on EUR/GBP if the price goes below than 0.8650 with a target points for profit taking at 0.8575. Orders S/L we need to set up at 30-50 points above the enter point.
This article is provided in the form of recommendations for trading and SuperForex Company is not responsible for the result of transactions made by you based on this analysis.
Please be aware that CFD and FX trading on margin carry high levels of risk. Traders should ensure they understand the risks associated with leveraged CFD and FX trading before deciding to trade.
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