Friday, February 02, 2018

EUR/GBP Next Week

Today is the end of the trading week and what we can observe on the W1 time frame creates a more realistic expectation about how the EUR/GBP pair (which I also assessed yesterday) will develop.

After reaching the support trend line (in black) this week this pair rebounded from the marked in pink support zone around 0.8730 – 0.8750 and I think it is very possible for it to close as a doji bar above that zone.

The last two W1 time frame bars also hint that that it is very likely for the pair to change directions next week by renewing its rally to the resistance trend line around 0.8950.

In the alternate scenario there will be a breakout below the two support zones (in pink and black), but in opinion that scenario appears less probable.