GBP and EUR both goes into a retracement.
It is an obvious U-turn as seen in the chart. Both WMA5 is negative, plus WMA8 has cut WMA5.
It may be a short retracement or a breather before the uptrend continue again. A good support line is for the GBP is around 1.950 (using EMA21 as well as fabonacci retracement). For the EUR is is around 1.316.
I don't expect today to have any big candle body formation for the GBP - a doji. I will be expecting a black candle formation for the EUR.
1 comment:
Well said Ernest!!!
Yup!!! Definately a day of dojis!!! There is a major price squeeze that could result in a fierce fight between the bulls and the bears resulting in a near zero price change for the day.
I would however, look for the wick instead. That could yield (20-30pips for GBP/USD) and (10-20pips for EUR/USD).
My take is to go into play early and take out position early. Be modest with profits. Importantly, don't linger or you will be faced with disappointments. This will not be a good way to spend your weekend either.
IMHO :)
Just a few cents of my thoughts!!!
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