EURGBP dropped last week and went below the six-year old support level (valid since July of 2016), that happend because of the war between Russia and Ukraine, that situaiton weighed on the Euro.
Now we can see the price in a sort of falling wedge and we must notice that the break of the lows of last week is not confirmed yet as a breakout because we can see a clear divergence in daily chart with 14,3,3 Stochastic, in addition the price is in the lower band of Bollinger.
This situation suggests a possible retracement towards 0.84 essentially in order to close a gap created last monday.
We need to wait an increase of Momentum before thinking about opening a position but the risk reward for a buy is pretty good now.
Cot report suggests net Euro positions are bigger than net GBP position.
Pay attenton to news and use a proper money management.
I will update my idea
Now we can see the price in a sort of falling wedge and we must notice that the break of the lows of last week is not confirmed yet as a breakout because we can see a clear divergence in daily chart with 14,3,3 Stochastic, in addition the price is in the lower band of Bollinger.
This situation suggests a possible retracement towards 0.84 essentially in order to close a gap created last monday.
We need to wait an increase of Momentum before thinking about opening a position but the risk reward for a buy is pretty good now.
Cot report suggests net Euro positions are bigger than net GBP position.
Pay attenton to news and use a proper money management.
I will update my idea