The Musings of Faith

Update on EUR/GBP The “breach” of the 50% Fib on the above weekly chart had no mojo at all turning into a mere price probe. The 0.8813 level provided strong resistance as price made a high of only 0.8816 and has now staged a deep pullback from that high. We’ve seen strong resistance at these Fibonacci levels before from the EUR/GBP so this price action should have been expected behavior. That bullish chart pattern on the hourly chart also held. I was fooled by the false breakout below the rectangle’s bottom at 0.8700 to 0.8686. If it had been a sustained break below there would have been a confirmation close below the bottom of the rectangle. But price immediately regained the whole number and went on to rally to a high so far at 0.8816 in the next 2 trading sessions. Now during the Asia session, the EUR/GBP has already staged a whopping 100% retracement of yesterday’s rally with a low on the day already of 0.8764. Though price is finding support at this level, we need to be aware of what this level of retracement means and that is a reversal of the intraday uptrend. I am staying away from this pair at the moment. EU rumors in regards to soverign debt is really affecting the euro. Also, news from the UK is due out in a couple hours (IP and BoE inflation report). I’ll be watching the 0.8813 level. If price finds resistance again at 0.8813, I will look for price to reverse from there. On the other hand, a break of this level targets former-support-turned-resistance at 0.8954. Trade what you see folks, not what I think.

Update on EUR/GBP

The “breach” of the 50% Fib on the above weekly chart had no mojo at all turning into a mere price probe. The 0.8813 level provided strong resistance as price made a high of only 0.8816 and has now staged a deep pullback from that high. We’ve seen strong resistance at these Fibonacci levels before from the EUR/GBP so this price action should have been expected behavior.

That bullish chart pattern on the hourly chart also held. I was fooled by the false breakout below the rectangle’s bottom at 0.8700 to 0.8686. If it had been a sustained break below there would have been a confirmation close below the bottom of the rectangle. But price immediately regained the whole number and went on to rally to a high so far at 0.8816 in the next 2 trading sessions.

Now during the Asia session, the EUR/GBP has already staged a whopping 100% retracement of yesterday’s rally with a low on the day already of 0.8764. Though price is finding support at this level, we need to be aware of what this level of retracement means and that is a reversal of the intraday uptrend.

I am staying away from this pair at the moment. EU rumors in regards to soverign debt is really affecting the euro. Also, news from the UK is due out in a couple hours (IP and BoE inflation report). I’ll be watching the 0.8813 level. If price finds resistance again at 0.8813, I will look for price to reverse from there. On the other hand, a break of this level targets former-support-turned-resistance at 0.8954.

Trade what you see folks, not what I think.

I am a woman born to Nigerian parents, walking with God, interested in art and technology yet passionate about economics, investments, and capital markets.
At 30, I started this site to be a collection of all that and more forming an eclectic collection of real information. Read more.
"Faith might do, accomplish, and create a lot. In fact, it does."

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