Forex Signals: Eur-Gbp, short set up in the resistance zone or break out? Eur-Gbp, daily Price Action chart Eur-Gbp: certainly its not a pair that shows, in the last period, a very clear and straight directionality however the medium-term trend remains bearish (even in the weekly time frame the prices moving below or in line with the moving average) also due to a fundamental situation that rewards the growth and the improvement of the UK economy. In the short term Eur-Gbp showed a strong recovery that took the pair up to the 0.8320 resistance area, which is important alsoin a dynamic point of view by the arrival of the long term trendline. A possible strategy might be to look for a long trading signal right in this level to resume the short move with a target on the 0.8160 support area. On the contrary, a potential bullish break out (as it’s happening right today) might lead to the opening of long positions with a price target on the next resistance 0.8460. Economic Calendar After a week of high volatility and still waiting for further developments in the Ukraine situation, we should have a more quiet days, useful to confirm the last movements we saw in the Forex market. Today we received some data from Japan, especially the gross domestic product which grew in the fourth quarter (0.2%) as expected, but less than the previous release; the retail sales in Switzerland, dropped; the investors confidence in the euro area, just below the forecast. The week began negatively for the Asian stock markets with the Japanese index losing 1%; European indices opened positively but turned into negative also considering the weakness of Wall Strret. Tomorrows economic calendar will present, as major market movers, the monetary policy meeting in Japan and the governors press conference Kuroda; the economic confidence in Australia; the industrial and manufacturing production in the UK as well as its GDP estimate. Maurizio Orsini mauriforex
Posted on: Mon, 10 Mar 2014 16:23:19 +0000
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