The EURGBP cross have obviously taken a recovery from its established low price at 0.7950 last week. Although, technically oversold, this recovery would be limited up to its 50% FIB retracement price as indicated by the 0.8170 1st objective point of resistance while simultaneously can be a pivotal point where fresh bids can emerge. This is where such dangerous volatile price action can take place and short-covering
reactions for the last two trading weeks ahead may seem to be too tight for mid-term traders to properly adjust positions.
The overall technical downtrend equivalent to its consolidation period is not finished. So there maybe some delay towards its weekly moving averages to adjust to the price levels while prices continue to correct upwards. For some technical strategists daily doji and island price reversal candle bar have taken effect last week ( indicated with an ISL signal on our weekly price page indicator dated the 15th of May) was an indication that this would be taking place. Why? Its due to the synchronized price levels between the USDx, EURUSD, USDCHF and the EURGBP cross coming together which we term as a cross signal between 4 major currency pairs. When this happens a contrary market price direction would occur, Timing such activity can only mean that a trade setup can be taken with limited risk Thus taking a short to medium term trade to cross our USDCHF long position is safe to initiate. Extensions on filling in the gap closes to 0.8110
would be the 1st objective.
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