EUR/GBP Trending To The Downside

Doug Rosen

By: Doug Rosen

Yesterday was a very interesting day for the EUR/GBP  It was a very technical day, on the daily timeframe price began precisely at the 50.0 fib level of the recent swing low and totally dived without looking back well over 100 pips and that is a lot of pips for the EUR/GBP.

 EUR/GBP Daily Analysis, November 24, 2011

Price dove all the way down to .8515 which was precisely the weekly S1 as well as last month's low then bounced all the way back up to where it started in just a few minutes. 

 EUR/GBP 4hour Analysis, November 24, 2011

At this time weekly price is just below the weekly 5 ema and on the daily timeframe price begins just below the 21 ema. 

On the 4 hour timeframe price made a 61.8 fib of the drop and it looks like price is heading down.  The 5 ema has crossed just below the 13, 21 and 144 ema's so momentum is bearish.  On the hourly timeframe price is below the 5 and 13 ema's and has also bounced off of last week's high which had previously been broken. 

At the time I am writing this price is just coming down tot he 233 ema which is overlapped with the lower Bollinger band which is closed and pointing up at around .8591 so a bullish bounce up will soon be expected. 

 EUR/GBP 1hour Analysis, November 24, 2011

Meanwhile, on the 15 minute timeframe price continues its downtrend making lower highs and lower lows. 

 EUR/GBP 15minute Analysis, November 24, 2011

Yesterdays low was .8587 so I expect a break of that level then a retest then price should head down, conversely, if price bounces up and breaks above the daily central pivot at .8610 then retests, watch for long opportunities.
 

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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