In today’s analysis, we’ll be looking at the EURGBP on the daily time.
We can see the market phycology located within the daily price action of this particular chart. This current downtrend or strengthening of Pound Sterling peaked towards the end of October, exactly in-line with the expected Brexit date of October 31st.
With this outcome failing to eventuate, we can see the market has taken its foot off the gas, so to speak, and now appears directionless and confused, trading within this narrow band of price action.
We have both a key support level 0f 0.85 and a key resistance level of 88 to consider going forward. To the downside, 0.85 looks to be providing a floor for the Euro Sterling price for the time being.
Alternatively, the 0.88 regions for those Euro Bulls may act as a potential ceiling for the pair.
If we include the 200-day moving average, it lines up well with this key resistance area. Also, dynamic support and resistance from the Ichimoku cloud look to buffer any attempts towards the 0.88 mark.
By Adam Taylor
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