With the TUG OF WAR, as in the ART OF WAR between the US Dollar and currency majors remains volatile, as we have seen on the opening Monday and Tuesday's corrective movement finally failed with the EURGBP cross rate giving way to its original directional trend lower.
After touching a short-live rally back to the 0.8603-0.8610 trading range as indicated with a circle on the chart Fig.A compared with the previous charts on Fig. 1&2. The continuation lower have been attributed to the steadier and corrective move of the Pound slightly higher compared with the lower Euro as of this update today the 28th of November 2011.
Currently, the EURGBP cross at 0.8533 below the S3 PIVOT support nearing its retest of the lower band
of 0.8380-0.8450 from its initial attempt as we gain closer to the end of the month's trading. However, the overlapping case scenario of closing month's trading within the mid-week closing month will provide a glimpse of the pre-market sentiment. The weekly candlestick bar will move in sync with the monthly bar's outlook giving a head start for the new month to open. This is a critical and important aspect of trading both Spot and futures, with the new month coming for December that would switch the nearby months forward. A closer look and analysis of both would be an advantage as a lot of traders do know the correlation of
Spot and Futures but without the distinct significance of an overlapping closing month. This is one of the trading tips that we suggest to seriously look into.
SEQUENCE OF MARKET BEHAVIOR & PRICE MOVEMENTS
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