~ Week Of September 5th 2016 ~
Potential Price Reaction
Published by Jay - September 4th 2016
After making an explosive move higher on the 24th of June, the EURGBP has settled back into a ranging market type.There is however a potential price reaction coming up that could help us bank some profits. Finding resistance around the 0.87000 mark, price has now moved lower and is headed into a key daily level that has previously been very well respected.
Looking at the daily chart below, we can see that on the 4th of August price turned around at this level and moved considerably higher after multiple rejections of that level prior to it.
If we can see a similar indication that the market is going to respect this level again in the new trading week ahead, then we'll buy into this pair and look to take profit both in the middle of the range and at the upper resistance level.