EURGBP Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of EURGBP (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 41 - 05 Oct
M > Price is in a strong structure within monthly resistance and support zones. Price moved up to test resistance zone, faced rejection and then started downward move.
W > Price created a W formation and dropped to test the neck and complete formation.
D > We can see M formation and expect a move up to test the neck before continuing with downward move.
As per COT EUR saw closure of more Long than Short, reducing net positions; EUR was very weak for the said week. EXY was positive last week though it reached resistance level and dropped. GBP saw closure of Long and addition of major short positions bringing net position to -ve, whereas N-R saw closure of both Long and Short, Commercials saw addition of Long and closure of Short. BXY was weak for the said week but it improved its position last week.
4H > We can see bearish trend where price broke last support. We expect a pull back to test neck of M formation before continuing with bearish move. Neck of M will offer good entry.
Pair Correlation > EURGBP has negative correlation with GBPCHF, GBPUSD and GBPJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section you can share your view and ask questions.
Thank You
AP17FX
