London Session Watch - EURGBP There is a pin bar candlestick pattern in the making on EUR/GBP which could potentially lead the price lower in todays London session. If it does close below the open of the current price bar, we will then have an official pin bar candlestick pattern formed. Ideally we would like to see this pin bar candlestick pattern form at the 0.7862 resistance level which will increase the probability of this setup. Note that the Stochastic indicator is showing the price is currently overbought as well which adds fuel to the bears while the Commodity Channel Index (CCI) and Relative Strength Index (RSI) are neutral at the moment. The long term trend is still down as the price remains below the 200 period golden moving average and Tenken-sen continues to stay below the Kijun-sen and MACD is also still below the zero line. On the flip side, the Parabolic SAR indicator isnt aligned with the bears and the volatility is slowing down as the width of the Bollinger Band starts to contract. With all that being said, we could still potentially have some selling opportunities in todays London session and the lower band of the Bollinger Band could serve as a target for sellers to take profits.
Posted on: Wed, 05 Nov 2014 10:43:14 +0000
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