EURGBP Forecast and Technical Analysis Week 19-23 March
Brexit uncertainty is the most important factor that makes pressure on the Sterling. Like all GBP pairs, EURGBP is one of the most difficult instruments to trade. – CRUDE OIL, GBPJPY, GBPNZD, GBPAUD are at the top of the list –
We have published our forecast and trade idea last week and the price reached our second target. We have generated 70 pips so far.
However, the real game has just started.
Looking at the Daily Chart, we see a few important points to underline.
- The false breakout after the broken bearish trend is indicating that the Euro bull has run out of power.
- Price ended below EMA 50,100 and 200. – On the H4 chart, we have a Golden Cross as well –
- The short-term bullish channel is broken. – You can see it on the H4 Chart clearly –
Keeping Brexit in my mind, we put our target levels as follows:
For This Week
0.87900 – 0.87580 and 0.87300
Pullback Levels to use as selling opportunities are 0.88500 and 0.88700
Fibonacci Retracement 61.80 % 0.86800 which has been tested three times before is the key level. Breakout of this strong support will lead the price 0.86000 and 0.85350.
We have reached the second target of this week. We predict the bearish pressure will remain on the pair. Pullbacks towards 0.8888 can be used as selling opportunities.
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.