Technical Bullish View. As we look at the Euro / Pound Pair we can see very volatile moves on the higher timeframes since Mid February.
Daily Time Frame:
4 Hour Time Frame:
1 Hour Time Frame:
TeamFX Review:
Technical Bullish View.
During the market crash witnessed in March. Price on the Euro rallied as the sell off continued. Pound remained very much on the weaker side as markets moved from 0.8300 to the 0.9450 level. Since then, as markets stabilise and volatility becomes reduced. Price action, has moved lower pullback against the extremities of the initial move with price on the Daily timeframes also retest the key 200 & 800 EMA levels around the 0.8700 to 0.8750 price point. As we look further into this and the lower timeframes on the 4hr and 1hr we can see clearly price action on the bearish retracement really starting to become quite exhaustive. Additionally, we see that 4hr rejection of the 800ema level just above the 0.8700 price level as price action is now attempting to move higher. Over the shorter term bias, where price action can negate a closure on the higher timeframes above this 0.8750 level, I would anticipate price action moving higher as it attempts to potentially retest the near term level of the 0.8850 level. Hypothetically, if this were to occur and break above the 0.8850 near term level, I would very much expect price to move higher into this 0.9000 level. The bullish favoured view, will only be invalidate whereby price breaks and closes below the lows at the 0.8700 and we see the initiated move lower to 0.8500 level and potentially the lows at 0.8300.
- Dan Legg