By: Doug Rosen
The EUR/GBP kicks off the new week in mid air. On the weekly chart we are neither at support or resistance levels as of yet. From the weekly perspective the next area of support I see is around 0.8525. The next area of resistance I see is at 0.8650. Currently, price finds its way about 55 pips below the 5 ema so either price will need to slow down just a bit to give the 5 ema a chance to catch up or it will need to retrace up a bit to make contact with the 5 so it can continue its way downward.
Zooming in to the daily chart price is maintaining itself below the 5 ema but once again price is in mid air between the 5 ema and the lower Bollinger band.
Moving on to the 4 hour chart price is also riding the 5 ema to the downside but the lower Bollinger band is pointing up. The monthly M2 pivot is at 0.8573. If price makes it to that level a reaction is expected.
Looking at the hourly chart price is just below the weekly pivot point at 0.8604 riding the ema's to the downside. The weekly M2 is at 0.8578 which is nearly overlapping the monthly M2 so most likely a reaction at that level will be expected.
Finally, on the 15 minute timeframe price has been riding down the 55 ema and price is below the daily central pivot point. The daily M2 is at 0.8586 and I expect a slight pullback at that level to take price down to 0.8570.