Free Trial

Bullish Engulfing Reversal?

EURO-STERLING TECHS

EURGBP yesterday traded lower in Asia-Pac hours confirming an extension of the current downtrend, before the price action gave way to a decent bounce into the close.

  • This activity is potentially significant, in pattern terms yesterday's candle line is a bullish engulfing reversal.
  • If correct, it signals a floor at 0.8946, yesterday's low.
  • Further gains would open 0.9107, Oct 23 high
  • A break of 0.8946 would negate the pattern and resume the downtrend.
  • Resistance levels to watch:
    • RES 1: 0.9066 Intraday high
    • RES 2: 0.9085 Trendline resistance drawn off the Sep 11 high
    • RES 3: 0.9107 High Oct 23
    • RES 4: 0.9149 Oct 20 high

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.