​EUR/USD Piercing Line Pattern Could Develop a Counter Trend Move

October 04, 2018 18:36

Source: EUR/GBP Admiral Markets MT5 with MT5SE Add-on - Accessed: 04.10.2018 02:15 AM

EURGBP Technical Analysis Chart

Source: EUR/GBP Admiral Markets MT5 with MT5SE Add-on - Accessed: 04.10.2018 02:15 AM

The EURGBP currency pair has dropped from the PP point, and we can see a consolidation around the S1 support. A retracement to the POC zone will probably decide the next move. Any rejection from the 0.8925-8940 region should target 0.8860. A break below 0.8860 might retest 0.8800 the S2 support. However a 4h candle close above 0.8970 might target 0.9037 and 0.9085. Both EUR and GBP have light news today, so normal volatility should be expected, except if unexpected news concerning Brexit hits the wire. Don't forget to follow our Forex calendar for all regular updates on the news, economic announcements, forecasts and much more.

Technically, the EUR/GBP currency pair formed a zig zag pattern that is bearish in its shape, so we might say that a general trend is still bearish. For news traders, bear in mind that the light GBP news - Housing Equity Withdrawal that is scheduled for early Thursday trading might not move the market that much, as its impact is negligible. Always pay attention to price action before you start making new entries. Consolidation usually precedes breakouts.

Pivot Lines - Weekly Support and Resistance

POC - POC - Point Of Confluence (The zone where we expect the price to react - aka the entry zone)

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

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