EUR/GBP: New long is possible, Price close to diagonal support

25.10.2016 / 22:02

Rating:

EUR/GBP:

Date: 25 October, 2016

D1 Graph: Long Trend

Price of the pair made a correction after reaching the high of 0,9300. The fall stopped at Fib 23,6% and close to the horizontal and diagonal support. The price continue to trade above the 50 and 200 МА.

Price Action: Engulfing bar on a diagonal and horizontal support - signal for long.

Alternative Scenario: If the price break below the Fib 50% and below the diagonal support will cancel this bullish scenario.

Technical Indicator:

DEM (14): In the overbought zone

Fundamental Analysis: The Pound continue to be under pressure, not only because of Brexit, but because of the uncertainty surrounding the negotiations of the trading agreements with EU and UK. This is far worst for the pound than the Euro. The Economy may worsen more than expected as well.

Price for Entry long around: 0.89300

SL: 0.88600

Jr. Trader - S. Fuchedzhiev

Varchev Traders

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EUR/GBP: New long is possible, Price close to diagonal support

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