EUR/GBP has been trending higher on the weekly chart:
The trend is caused by a few things:
- Increasing threat of Brexit
- ECB implying that more easing may not be needed
- BOE pulling back from it's previous hawkish position, downgrading inflation forecasts several times
The daily chart shows price pulling back against the weekly trend, to the 50 day EMA which it has respected before.
This pullback came ahead of Draghi's speech yesterday, but his speech was much less dovish than expected, saying that current easing measures should be given a chance to work, and inflation is expected to pick up.
So we have a weekly trend driven by predictable fundamentals, a daily pullback to a support level, but the fundamental reasons for the weekly trend are still there. This tells me the trend is more likely than not to continue.
Looking at the 4H chart, the last 8 candles show price making a sideways consolidation pattern:
Placing a buy order above the top of that range, S/L at the bottom of it and TP just before major resistance.
The trend is caused by a few things:
- Increasing threat of Brexit
- ECB implying that more easing may not be needed
- BOE pulling back from it's previous hawkish position, downgrading inflation forecasts several times
The daily chart shows price pulling back against the weekly trend, to the 50 day EMA which it has respected before.
This pullback came ahead of Draghi's speech yesterday, but his speech was much less dovish than expected, saying that current easing measures should be given a chance to work, and inflation is expected to pick up.
So we have a weekly trend driven by predictable fundamentals, a daily pullback to a support level, but the fundamental reasons for the weekly trend are still there. This tells me the trend is more likely than not to continue.
Looking at the 4H chart, the last 8 candles show price making a sideways consolidation pattern:
Placing a buy order above the top of that range, S/L at the bottom of it and TP just before major resistance.
si hoc legere scis nimium eruditionis habes
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