EUR/GBP Weekly candlestick chart. Happiness more or less! A lucky man suffering no disgrace after buying EUR/GBP yesterday! It was, after all, the most obvious “short term” buy in the market after the decline in cable last week, and is now testing towards important technical areas with price action currently at 0.8795 the figure is not far off.
Technically the pivot level on the weekly chart is still valid and holding and has a tweezer type candlestick pattern precisely on the pivot level at 0.8664. All the time the market is above this level the 30 day moving average at 0.8820 attracts with resistance likely at the figure 0.88(00). Above 0.8820 leaves 0.8829 a minor pivot level and 0.8853 the 10 week moving average which has just crossed negative on the weekly chart (see chart). Support comes in at the 10 day moving average currently at 0.8725 with 0.8664 below that.
Bigger picture the market seems to have created a triangle pattern on the weekly chart which would suggest higher further out.
Bias for this week is higher towards 0.8821/29/53 with the likelihood that the spot market is gunning for stops but there is a real risk of a move much higher if the market is able to sustain the higher prices above the pivot level at 0.8664 (see triangle pattern on chart). Below the pivot level and 0.8500 is back as potential bear target.
