EUR/GBP: A massive bullish engulfing candle on the weekly chart

Jason Sen DayTradeIdeas.co.uk

GBP/USD – EUR/GBP

GBPUSD bounced 15 pips below the best support at the 100 day moving average at 1.3695/85, exactly at the March low at 1.3668.

EURGBP recovered all of March’s losses forming a massive bullish engulfing candle on the weekly chart.

Daily Analysis

GBPUSD key support at the 100 day moving average & correction low at 1.3685/65. A bounce targets 1.3745/55. Expect strong resistance at 1.3790/1.3810. Shorts need stops above 1.3820. Above here targets 1.3860 & strong resistance at 1.3880/90.

1.3685/70 is the most important support of the week but longs need stops below 1.3655. A break lower to is likely to target 1.3580/60.

EURGB topped exactly at the next target of 8690/8700. Further gains meet very strong resistance at 8750/60.

Two strong support levels today at 8650/40 & 8515/05.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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