EURGBP - Moving higher in an AB=CD formation
|Technical
Monthly: Since posting large nett losses in September 2017 (-395 pips) the cross has moved sideways. Price action on March (2018) has seen a bearish Outside Month posted and offers a mild downward bias. Dip buying has been seen in April. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending.
Weekly: Last week’s positive price action formed a bullish Outside Week, normally an indication of a change of trend. However, the rally was capped by the Ichimoku Cloud. An area to note to the downside is 0.8314 (bespoke support). This is close to the 261.8% extension level of 0.8301 (from 0.9299-0.8682) and the previous swing low 0.8297 (week 17th April 2017). Last week’s Marabuzo level (mid-point from open and close) is located at 0.8714.
Daily: The last two days have posted Inside Soldiers, a clear sign of investor indecision. We have posted a DeMark exhaustion 13 count from the base. The chart highlighting levels under 0.8714 (last week’s Marabuzo) attracting buyers. We look for losses to be limited as we move higher in an AB=CD formation (corrective).
Action:
We look to Buy at 0.8714
Stop: 0.8650
Targets: 0.8840 and 0.8880
Article produced by Pia First for Orbex Limited
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