Don’t look now, but I think we may just see EUR/GBP pull off a hip-hop move and “bounce” at a potential support-turned-resistance level. Remember, whenever price passes through a major support level, that level usually becomes resistance. If you weren’t able to ride the move down before, then you might have an opportunity to short very soon!
Will support hold or break? That is the important question right now as price is trading around the significant support at 1.2450. If support breaks, look for price to head to the next major support level at 1.2300. However, if 1.2450 holds, we could see price head back up to 1.2600 at least.
It has been three days now since the symmetrical triangle on EUR/CAD’s 4-hour time frame broke, but it doesn’t look like the selling will stop just yet. As you can see, price continues to be pushed down by the bears as it approaches the former low at 1.2730. If you’re still short on the pair, you can probably squeeze out a few pips. Be extremely careful though! The Stochastic has been in the oversold territory for more than 24 hours now, which means we could possibly see a small bounce!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.