Price & Time: Low in EUR/GBP?
- Cycle turn window in effect over next few days
- Cross nearing key support
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Weighed down by a quarter-end 3 billion Euro plus European Union farming subsidy payment, EUR/GBP traded down to its lowest level since January of 2012 at the beginning of the week. However, our analysis of the cycles suggests the cross rate is becoming vulnerable to a reversal. WD Gann remarked in several of his writings that persistent trends often culminate around 45 and 90 day increments. Later this week EUR/GBP will be 45 trading days off the early August high. At the same time the cross is entering this cyclical turn window, it is testing important support at .8345. This level is important to the cross from a Gann perspective as it marks the 5th square root progression of the year’s .8814 high and a clear potential turning point. We will be monitoring the cross closely over the next few days for more concrete signs of a turn. Aggressive weakness below .8345 risks a deeper decline towards .8285.
EUR/GBP Daily Chart: October 2, 2013
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risks in Coming Sessions:
LEVELS TO WATCH
Resistance: .8390 (Fibonacci), .8435 (Ganni)
Support: .8345 (Gann), .8285 (Gannl)
Strategy: Buy EUR/GBP
Entry: Buy EUR/GBP at .8365
Stop: 1-day close below .8330
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
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