The EURUGBP has fired off an bearish engulfing bar (BEEB) on the daily price action chart. This engulfing bar is very large, commanding and is also up at a swing high like all good bearish engulfing bars should be. This engulfing bar is also rejecting a proven previous resistance area. There has been no trend in this market in recent times, with the market in clear sideways action. A lot of Forex pairs have been range trading of late and this market is doing the same. If price can break the engulfing bar low price may be able to move lower where it will then run into a very close near term support.
The chart below shows this very close near term support which was also an old proven resistance area. If price does move into this area it would not surprise to see price either stall or reject and move back higher. If price can break through this support the next major level for price to move into on the daily chart is 0.8480.
EURGBP DAILY CHART | 18 JULY 2013
Leave a Reply