The price is preparing to break this laterality
The price is preparing to break this laterality.
The situation kept the price within the channel between support at 0.846 and resistance (both static and dynamic) identified respectively by 38.2% of Fibonacci retracement and by EMA20 weekly periods. If there was a confirmation of closure above this level, the price will tend to reach the subsequent static resistance area. That is located about 0.89, and could register a very short term rally on price.
If the price breaks down the support in the 0.843 area, the main downtrend would remain unchanged. Bringing this change back to below 0.80, it can reach a minimum not been touched for 3 years.
The macroeconomic scenario remains in favor of a short-term uptrend. The uncertainties of the Eurozone continue to weigh on the reference currency. The monetary policies that will be adopted is favoring a devaluation of the Euro in the medium term. The Brexit situation remains unchanged and according to the main analysts will set new period minimums for gbp by June. The target area that investors aim is between 0.89 and 0.91.
From here it is possible that this pair will stabilize and that therefore the descent will continue again towards the EMA200 weekly (0.855). As soon as the closure above this resistance is tested, we will recommend a long entry.
The situation kept the price within the channel between support at 0.846 and resistance (both static and dynamic) identified respectively by 38.2% of Fibonacci retracement and by EMA20 weekly periods. If there was a confirmation of closure above this level, the price will tend to reach the subsequent static resistance area. That is located about 0.89, and could register a very short term rally on price.
If the price breaks down the support in the 0.843 area, the main downtrend would remain unchanged. Bringing this change back to below 0.80, it can reach a minimum not been touched for 3 years.
The macroeconomic scenario remains in favor of a short-term uptrend. The uncertainties of the Eurozone continue to weigh on the reference currency. The monetary policies that will be adopted is favoring a devaluation of the Euro in the medium term. The Brexit situation remains unchanged and according to the main analysts will set new period minimums for gbp by June. The target area that investors aim is between 0.89 and 0.91.
From here it is possible that this pair will stabilize and that therefore the descent will continue again towards the EMA200 weekly (0.855). As soon as the closure above this resistance is tested, we will recommend a long entry.
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