EUR/GBP Looks Toppish around .8613

Doug Rosen

By: Doug Rosen

I will begin my analysis for the EUR/GBP today on the 4 hour timeframe I normally begin my analysis on the weekly and daily timeframes, however, today I don't see any significant events developing on the weekly or daily timeframes but the 4 hour timeframe has more to say.

EUR/GBP 4 hour chart - November 29, 2011

In yesterday's EUR/GBP analysis, I had price confined in the nose of a price trap and was watching for the possibility of a breakout that did occur to the upside just a bit ago only to be halted by the 144 ema which also overlaps with the weekly M3 pivot point as well as yesterdays high not mention the 38.2 fib level of the last major move down. This is a lot of resistance confluence and I have a hard time believing that price will break through these areas of resistance overlap and the 4 hour 233 ema is just above the 38.2 fib zone. Moving on to the hourly timeframe stochastics is in the overbought zone and price looks like it is topping out just below the weekly M3 at .8613 which is where the 54 hour 144 ema is at.

EUR/GBP 1 hour chart - November 29, 2011

Finally, on the 15 minute timeframe stochastics is also in the overbought region prepping to cross down. The upper Bollinger band is closing and the 5 and 13 ema's are losing angle and separation between each other. I will be watching for downside price action for this pair today.

EUR/GBP 15 Minute Chart - November 29, 2011

Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

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