EUR/GBP: Trend?
Eddie Tofpik | Oct 02, 2017 06:56
Last time, though I had a Mildly Bullish bullet point, I also commented towards the end:
If on the other had we have consecutive closes below the Fib at 0.9023 then I'd reconsider taking the question mark off and even looking at Neutral (despite being so very far away from the Medium MA, currently 0.8794])
Well, we've definitely turned around lower and closed below the Medium MA (currently 0.8893) so I will be moving the bullet point above into Neutral. Additionally, you may also recall from last time as well as my TV appearances that I have repeatedly warned that as we approach the 21st Century high at 0.9412 then the layering of defensive resistance levels will become closer and more intense. This is the reason the market chose to turn lower. So where now? Well, as Neutral suggests, the forces of Bullish and Bearish are pretty much matched.
We are underneath the medium MA resistance but above the Long MA (currently 0.8723) support. Consecutive closes above or below either of these two would likely suggest the next direction...when it comes - false breaks permitting. There is of course the Third Way, the one we're already in - sideways due to a Neutral market. There is no real clue from the last few days' action....last Monday we had a Bearish Harami which followed through till last Wednesday when we had the Long MA edging high enough to influence prices just slightly back up. With both the Medium and Long MAs heading higher slightly the chances are we might see a gentle rise as the Long MA approaches the market. However, this is not set in stone.
Support is currently at 0.8810, 0.8781, 0.8772, 0.8743, 0.8723 (dynamic), 0.8708, 0.8692 and 0.8650.
Resistance is currently at 0.8834, 0.8885, 0.8893 (dynamic), 0.8899, 0.8927, 0.8959 and 0.8981.
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