EUR / GBP Technical Analysis Oct 18

Can the sellers force the EURGBP lower at 0.8998?

The EURGBP has been mostly oscillating, since the 17th of October 2016, within a bearish formation between the range of 0.9056 and 0.8998 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 0.8998 zone which is today’s major pivot point area.

Probable Scenario

In the condition where the pair drops and stabilizes below the 0.8998 area, the price could be forced to decline to lower zones such as the 0.8960.

The Stochastic oscillator also confirms that the price has greater chances to retrace and decline at the 80 level.

eurgbp-oct-18-2016

Alternative Scenario

Alternatively, should the buyers lead the price above the 0.9020 area Fibonacci’s 61.8%, the pair could appreciate as high as 0.9056 Fibonacci’s 0.0%.

Today’s Major Announcements

  • There are no any releases on the euro
  • The Consumer Price Index (YoY) (Sep) and the Core Consumer Price Index (YoY) (Sep) releases are expected to have a strong influence on the sterling

Synopsis

·         Probable trend (Bearish): 0.8998

·         Bearish take profit target: 0.8960

·         Stop loss target: 0.9020

·         Alternative trend (Bullish): 0.9020

·         Bullish take profit target: 0.9056

Ben Myers

Ben began his long career in international finance and investing after graduating with a degree in Finance & Accounting. Prior to founding a financial advisory firm he worked with multi-national institutions including HSBC and Bank of Ireland. After several stints as a chief analyst at forex/binary options companies Ben still remains a keen trader and featured contributor on numerous financial sites.