Free Trial

Candle Pattern Suggest Scope For A Correction

EURGBP TECHS
  • RES 4: 0.8498 High Dec 23
  • RES 3: 0.8465 High Dec 24
  • RES 2: 0.8404/23 50-day EMA / High Jan 24 and a key resistance
  • RES 1: 0.8372 High Jan 26
  • PRICE: 0.8336 @ 06:21 GMT Feb 2
  • SUP 1: 0.8305 Low Jan 20/28/31, lowest since 2020
  • SUP 3: 0.8300 Base of the multi-year broad range
  • SUP 4: 0.8282/77 Low Feb’20 / Dec’19 and key bear trigger
  • SUP 4: 0.8242 50% Fibonacci Retracement 2015-2020 Upleg

EURGBP remains bearish however from a short-term perspective, there is potential for a correction - Monday’s candle pattern is a bullish engulfing reversal that signals a near-term base. An extension would open 0.8404, the 50-day EMA. The broader trend remains down however and a resumption of weakness would open 0.8282/77, the Feb’20 and Dec’19 lows and the multi-year range base at 0.8300.

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.