Overview of the British Pound Currencies

Overview of the British Pound Currencies

Where will the GBPUSD and EURGBP likely go this week?

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GBPUSD

The GBPUSD weekly chart indicates that price is approaching a resistance area (red dot) and the Stochastics is indicating that the market is likely overbought.  However, a bearish candlestick needs to form to turn the Stochastics to the downside, indicating a retracement back to the ATR (blue plus sign) is likely.  Additionally, since the moving averages are above the ATR, they could also provide support so watching this area is advised.

 

Overview of the British Pound Currencies GBPUSD weekly

Going down in time to a daily chart, the bearish candlestick has completed and the Stochastics is now turning downwards.  This is an indication that price is likely to retrace.  The retracement could go down to the blue moving average or to the ATR (blue plus sign).  Since the weekly is also potentially overbought, the ATR is the most likely area that may provide support (weekly will potentially create a stronger pullback because the Stochastics is also overbought).

 

Overview of the British Pound Currencies GBPUSD DailyEURGBP

The EURGBP weekly chart shows a bullish candlestick pattern is developing.  The Stochastics is also indicating that the market is likely oversold and a retracement is likely.  The most likely area that price will find resistance is the ATR (red plus sign), which is above price.  More than likely, the ATR will move down closer to the moving averages as the week progresses, so watching this area would be prudent.

Overview of the British Pound Currencies EURGBP weeklyGoing down in time to the daily chart reveals that yesterday completed a pivot low candlestick formation.  This likely indicates that an upward move is likely.  Additionally, even though price moved lower than the previous low, the Stochastics did not.  Instead a higher low was formed on the Stochastics (red lines on chart).  This indicates a potential bullish divergence, which also indicates a potential for price to move up.  More likely than not, price will move up towards the ATR (red plus sign) but it will be important for price to close above the blue moving average.

Overview of the British Pound Currencies EURGBP Daily

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