The bearish wave that started by the mid of the last week is finding support around 0.7906, the 50% Fibonacci level and the trend line. The price already broke out the support around 0.7923, the 50 SMA.
The price is expected to start the second bullish wave around 50% fib level ahead of 0.7850, the psychological number and then the 61.8% fib level. The 50 SMA and 100 SMA are also getting closer that shows the market is preparing for the potential rebound.
As of this writing, the price is being traded at 0.7914, the same price that opened the Asian session today. Bulls and bears are struggling equally, causing indecision in the market.
On the upside, there lies a resistance around 0.8035, breaking which the EUR/GBP may hit 0.8065, the September high.
Today’s economic calendar contains the following releases for the Euro and the GBP.
Rightmove House Price Index (YoY)
The Rightmove House Price Index for this October is 7.6%, below than that of the previous month which was 7.9%. Generally speaking, a high reading is considered positive (bullish) for GBP while a low reading is considered negative (bearish) for the GBP.
Producer Price Index (YoY)
The Producer Price Index for this September is -1.0% as compared to -0.8% of the same month of the previous year. As an indicator of commodity inflation, a high reading is bullish for the Euro and a low reading is bearish.
Considering the fundamental and technical analysis, there is no actionable opportunity yet. However, long position can be considered if the price pulls back from the 50% fib level, the probable reversal zone.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT