Can the bulls lead the EURGBP higher at 0.8912?
The downside pressures on the pair got more tensed since the 20th of October 2016 where the price dropped from as high as 0.9027 to as low as 0.8912.
The bears took control over the pair by 100 plus pips to their favour, a movement with good gains for the sellers and losses for the buyers.
Probable Scenario
The latest stabilization of the price close to the 0.8912 zone, which is today’s major pivot point level, is a good indication that the bulls could likely exert momentum to boost the price upwards.
Stochastic oscillators’ formation signals that a probable bullish retracement, close to the 35 level, has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit target at 0.9027.
Alternative Scenario
Alternatively, a bearish break-out below the 0.8842 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 0.8732.
Today’s Major Announcements
- ECB President Draghi’s Speech could have a high impact on the euro
- The BOE’s Governor Carney Speech is expected to have a strong impact on the sterling
Synopsis
· Probable trend (Bullish): 0.8912
· Bullish take profit target: 0.9027
· Stop loss target: 0.8842
· Alternative trend (Bearish): 0.8842
· Bearish take profit target: 0.8732
