In the near term, the 0.8925 area will likely attract an influx of offers. Any bearish price action from here could provide an attractive short setup.
However, I have a sneaking suspicion that bulls want to take prices to 0.8980. This area served as resistance back in late July and subsequently attracted bids on the 12th and 13th of September.
I’m going to hold off to see what kind of price action we get at 0.8925. A daily close (5 pm EST) above it would open the door to the next resistance level at 0.8980. This too is an area that could produce a favorable selling opportunity.
As long as 0.8980 holds as resistance on a daily closing basis, I will maintain the idea that a major reversal is likely. Given the location of the weekly swing highs and lows since 2015 (see chart above), it appears EURGBP bulls may be ready to capitulate.
Key support from here comes in at 0.8744 followed by 0.8600. The latter will be my target should we get a favorable short setup in the coming days.
Source: bit.ly/2xWBiHq
However, I have a sneaking suspicion that bulls want to take prices to 0.8980. This area served as resistance back in late July and subsequently attracted bids on the 12th and 13th of September.
I’m going to hold off to see what kind of price action we get at 0.8925. A daily close (5 pm EST) above it would open the door to the next resistance level at 0.8980. This too is an area that could produce a favorable selling opportunity.
As long as 0.8980 holds as resistance on a daily closing basis, I will maintain the idea that a major reversal is likely. Given the location of the weekly swing highs and lows since 2015 (see chart above), it appears EURGBP bulls may be ready to capitulate.
Key support from here comes in at 0.8744 followed by 0.8600. The latter will be my target should we get a favorable short setup in the coming days.
Source: bit.ly/2xWBiHq
