Possible Breakdown In EURGBP | EURGBP AnalysisThe current market price of EURGBP is sitting at support area.
Considering the previous Daily price action, the price is forming lower highs into the support area which means buyers are not strong enough and sellers are rejecting any jump in price.
The current price actions is forming a DESCENDING TRIANGLE, which is a bearish pattern. But it will be activated only when the Daily candle closes below the neckline of triangle, which in this case is the support area of 0.8718-0.869
Once, the daily candle closes below the support range, we can expect price to keep falling till 0.855, unless, the next daily candle closes back above the support resulting in FAKE BREAKDOWN/FALSE BREAKDOWN/BEAR TRAP.
HOWEVER, since price is at support, price may bounce.
On going to Lower Time Frame of 30 minutes, i see a double bottom pattern which is a reversal pattern. If the pattern breaks out, i expect the price to move up. Falling trendline may act as a resistance, so make sure to book profits before that.
CONCLUSION-
1. Price is at support and may bounce. 30 min double bottom has been formed. Breakout of pattern may result in jump in prices
2. If Daily candle closes below the support range of 0.8718-0.869, expect prices to fall till 0.855
Let me know in the comments section if you want me to analyse any other financial instrument.
WARNING:-
ALWAYS FOLLOW RISK MANAGEMENT AND POSITION SIZING WHILE TAKING ANY TRADE.
Forexsetup
U.S. inflation reports and the ECB's interest rate U.S. will release CPI and PPI data on 14 and 15 March at 12:30 p.m. UTC
The Consumer Price Index (CPI) is a monthly report measuring differences in prices of goods and services consumers buy. Producer Price Index (PPI) shows changes in the price of goods and services producers purchase. Both reports are popular inflation indicators, and inflation is the most important data for the Federal Reserve (Fed) to plan its monetary policy.
CPI and PPI reports will give clues on the outcome of the next Fed's policy meeting on 21–22 March. The market expects inflation to slow only a little, meaning the Fed will have to provide more rate hikes. If reports indicate a substantial slowdown in inflation, it will surprise the market and bring down the U.S. dollar.
The ECB's interest rate decision is due on 16 March at 1:15 p.m. UTC.
The market is firmly sure that the European Central Bank will deliver a 50-basis points (bps) rate hike. If these expectations of a 50-bps hike are met, EURUSD will rise slightly as the rate increase is already priced in. In case the rate hike is smaller than expected, the euro will drop sharply. However, this scenario is highly unlikely to happen.
EURUSD Forecast for 21st Feb,2023Its having a lot of selling pressure and due to some dumb reasons bulls are not stepping in. It was very much hilarious to see how it kept on bouncing from 1.07 level. Anyways please keep in mind the following levels for any trade set up today.
20th Feb
DH - 1.07045
DL- 1.06701
21ST FEB
PIVOT - 1.0686
R1-1.0703, S1- 1.0668
R2-1.0721, S2- 1.0652
R3- 1.0755, S3- 1.0618
* Needs to move though 1.0668 and pivot to target 1.0703 and 1.07045.
* Return to 1.07 Level will give a bullish signal
* Failure to move through S1 and Pivot can bring it down to 1.0652
* Levels below 1.06 shall be avoided to avoid major sell off
* 1.0618 level shall limit the sell off
* A move through 1.0668 would support the breakthrough from 1.0703 and 1.07057 and can give a bull run to 1.0721 and 1.07305
* Failure to move through 1.07057 can bring it down to the support levels.
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