Mthokozisi Mpofu
Knars Capital
EURGBP, this pair corrected aggressively lower down to the 50 Fibonacci level. This move lower was impulsive and in five waves signalling to us that this was the start of a zigzag. A zigzag pattern is a 5-3-5 pattern as a correction of the larger degree trend.
We touched 0.90806 and moved higher from that level in a slow and choppy manner. The dotted lined marked 0.92094 in the chart below is the 61.8 Fibonacci level of the initial move lower. Which is a good area to look for short positions in the direction of the zigzag correction with targets around 0.90065.
0.90806 would meet the minimum requirements for a zigzag land the pair may continue higher from that 50 Fibonacci level instead of going lower. Keep an eye for a bounce in the direction of the larger degree trend moving forward.
Key news events out this week:
Wednesday 23rd of September French Flash Manufacturing and services PMI, German Flash Manufacturing and services PMI, GBP Flash Manufacturing, and services PMI.
Res: 0.92094; 0.92914; 0.93293
Sup: 0.90806; 0.90065; 0.89626
None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.
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