EURGBP H4 Potential Setup
Updated
This morning we saw a close of a Bullish Engulfing which was followed by a slight rejection just above the monthly resistance level of 0.89430 . The EUR has continued this fall this evening however it being a Friday can produce unpredictable signals, we may see that the Bullish Engulfing does prove to be a turning point of the short downtrend this afternoon and see it climb to the upside of around 0.8990 mark. Here it would meet the daily falling trendline which is where I will be watching, will it reject or break through? I will need this confirmation either way before I jump in as the trendline is not as strong as I would like to see.
Monday we have a speech from Draghi so we could see some early week movement on this pair, depending on dovish or hawkish it may take this to the D1 trendline but we shall see.... GBP news is pretty quite until Thursday so I will be looking at making a decision early part of the week on where this pair is going to head, then getting out to re-assess before a very busy economics day for both currencies on Thursday. We have the RSI at a nice level but the Stoch at a turning point, so will be patient with this and see where it begins to head.
Appreciate everyone's feedback and thoughts so don't be shy, I need to be told right or wrong either way!
Monday we have a speech from Draghi so we could see some early week movement on this pair, depending on dovish or hawkish it may take this to the D1 trendline but we shall see.... GBP news is pretty quite until Thursday so I will be looking at making a decision early part of the week on where this pair is going to head, then getting out to re-assess before a very busy economics day for both currencies on Thursday. We have the RSI at a nice level but the Stoch at a turning point, so will be patient with this and see where it begins to head.
Appreciate everyone's feedback and thoughts so don't be shy, I need to be told right or wrong either way!
Note
I have been thinking about the Euro and can see it retracing to the 0.8909 level before making moves North, long for me.
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