Our expectations: The short-term trend remains short, despite better UK retail sales. From a purely fundamental point of view, the currency pair reflects better data from US jobless claims, than UK good sales figures. Technically the pair is in a downward trend and at good sales levels in the short term. What do we have? Basic diagonal resistance, horizontal resistance and 38.2% Fibonacci correction. 50 and 200SMA are sword-mounted, and DeMarker points down from over-purchases. Price Action - The price rebounds strongly from the resistance zone, forming a reversing bar, and a hangman formation. I expect the bearish impulse to survive, and with good economic data from the United States, a bottom test until the end of the week is entirely possible.
SL: 1.34315
Alternative scenario: If the price goes above the resistance zone and stays there in several consecutive bars, the negative scenario will break and we are more likely to see a raise.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.