Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/GBP at a Projected Support and 61.8% Retracement

The EUR/GBP fell sharply this week after consolidating a couple of weeks to create a price top.  


(EUR/GBP 4H Chart)

You have heard the saying "don't catch a falling knife". However it seems like some traders are sticking there hands out, but understandably. 

The EUR/GBP is tagging the 61.8% retracement level, reinforced by a rising trendline. 

It is also tagging a previously broken falling resistance (seen in the daily chart below), which could shift into support. 


(EUR/GBP daily chart)

For me, the pair is at the crossroad, and will need a few more sessions to show more directional clues. Let's see if the current support can build a price bottom in the 4H, 1H charts.

If not, we are looking at a bearish, or sideways market, in which case, we should consider selling on a rally toward 0.84, or buying from 0.8160.