Is 0.8895 a bearish opportunity on the EURGBP?
The EURGBP has been mostly oscillating, since the 1st of November 2016, within a bearish formation between the 0.9047 and 0.8895.
Both the buyers and the sellers are now placing strong pressures in their attempts of taking control over the pair’s price.
The price is now oscillating slightly above the 0.8895 zone which is today’s major pivot point area.
Probable Scenario
In the condition where the pair stabilizes below the 0.8895 area, the price could be forced to decline to lower zones such as the 0.8803 level.
The Stochastic oscillator also confirms that the price has greater chances to retrace and decline at the 50 level.
Alternative Scenario
Alternatively, should the buyers take the lead and boost the price above the 0.8952 area Fibonacci’s 100.0% the pair could appreciate as high as 0.9047.
Today’s Major Announcements
- Germany’s Current Account n.s.a (Sep), the Trade Balance s.a (Sep), the Exports (MoM) (Sep), and the Imports (MoM) (Sep) releases are expected to have a medium influence on the euro
- The Inflation Report Hearings and the NIESR GDP Estimate (3M) (Oct) releases are expected to have a strong impact on the sterling
Synopsis
· Probable trend (Bearish): 0.8895
· Bearish take profit target: 0.8803
· Stop loss target: 0.8952
· Alternative trend (Bullish): 0.8952
· Bullish take profit target: 0.9047
