Can the sellers force the EURGBP lower at 0.8979?
The EURGBP has been mostly oscillating, since the 27th of October 2016, within a bullish formation between the range of 0.8891 and 0.9034 respectively.
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 0.8979 zone which is today’s major pivot point area.
Probable Scenario
In the condition where the pair drops and stabilizes below the 0.8979 area, the price could be forced to decline to lower zones such as the 0.8891.
The Stochastic oscillator also confirms that the price has greater chances to retrace and decline at the 30 level.
Alternative Scenario
Alternatively, should the buyers lead the price above the 0.9034 area Fibonacci’s 161.8%, the pair could appreciate as high as 0.9122 Fibonacci’s 261.8%.
Today’s Major Announcements
- Euro zone’s Gross Domestic Product s.a. (QoQ) (Q3), the Gross Domestic Product s.a. (YoY) (Q3), the Consumer Price Index (YoY) (Oct), and the Consumer Price Index – Core (YoY) (Oct) releases are expected to have a strong impact on the euro
- The Consumer Credit (Sep) and the Mortgage Approvals (Sep) releases are expected to have a medium impact on the sterling
Synopsis
· Probable trend (Bearish): 0.8979
· Bearish take profit target: 0.8891
· Stop loss target: 0.9034
· Alternative trend (Bullish): 0.9034
· Bullish take profit target: 0.9122
