FХ Strategist & Financial Commentator
During the last week, this pair pushed towards 0.95 resistance area, nearby the zone of thehistorical top recorded in the very beginning of 2009, at the end of the subrime crisis, before a strong bearish acceleration set on last Friday’s session.
During this week the pound is fastly recovering relative strength with a first target price that could be expected towards 0.90 nearby the bottom area of last week.
The Average True Range, has reach a new top around 160 pips of daily range, and in my opinion a correctional movement is ready to begin, and of course this element could favour the pound during the next days. In my opinion, this volatility compression could be expected on the financial markets in general, recovering stability at least partially, with an overall rebalancing of the quotes on different assets, including EurGbp.
If this pair will reach target price around 0.90 area, the pound would still have the chance, to accelerate towards 0.8750 area nearby the 61% Fibonacci retracement where we can detect a major price level. This scenario would be denied only in case of a weekly closure above 0.9380.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.