Daily Perspective:
As investors hope to find clarity on the situation, this market remains very sensitive to what seems like even the slightest thread of news regarding Brexit. Yesterday found strength in the fact that negotiations were developing and a final text had been finally put together, but with the underlying uncertainty remaining the market pulled back from the refined fibonacci zone in line with a rejection of the 1.3000 key level. This could be the classic case of buy the rumour and sell the fact. With yesterday’s session having closed just below the exponential moving average we look for price to close convincingly above/below for confirmation of direction. Today’s candle has already made another attempt at 1.3000 major resistance but has retraced- currently rejecting this level. While price sits at the moving average support I do expect today’s session to see 1.2925 daily support. A break of 1.2925 would see a continuation downside to 1.2845 and 1.2750 in line with my original analysis. Should price find support around the current region then it’s likely we’ll see further consolidation and yet another test of the 1.3000 level.
H4:
Yesterday saw an influx of buyers into the market off the back of Brexit developments. This move pushed price through the 1.2925 resistance zone to a test of the 1.3000 major psychological level. Having spiked through this region to tap the 61.8% of our downside Fibonacci, price pulled back to moving average support. The moving averages have just crossed to the upside but with price continuing to reject the 1.3000 level we are currently seeing another retest of the dynamic support. Should price reject these moving averages then we will be looking at a break of the 1.3000 to head towards 1.3100 and previous highs around 1.3160.
As investors hope to find clarity on the situation, this market remains very sensitive to what seems like even the slightest thread of news regarding Brexit. Yesterday found strength in the fact that negotiations were developing and a final text had been finally put together, but with the underlying uncertainty remaining the market pulled back from the refined fibonacci zone in line with a rejection of the 1.3000 key level. This could be the classic case of buy the rumour and sell the fact. With yesterday’s session having closed just below the exponential moving average we look for price to close convincingly above/below for confirmation of direction. Today’s candle has already made another attempt at 1.3000 major resistance but has retraced- currently rejecting this level. While price sits at the moving average support I do expect today’s session to see 1.2925 daily support. A break of 1.2925 would see a continuation downside to 1.2845 and 1.2750 in line with my original analysis. Should price find support around the current region then it’s likely we’ll see further consolidation and yet another test of the 1.3000 level.
H4:
Yesterday saw an influx of buyers into the market off the back of Brexit developments. This move pushed price through the 1.2925 resistance zone to a test of the 1.3000 major psychological level. Having spiked through this region to tap the 61.8% of our downside Fibonacci, price pulled back to moving average support. The moving averages have just crossed to the upside but with price continuing to reject the 1.3000 level we are currently seeing another retest of the dynamic support. Should price reject these moving averages then we will be looking at a break of the 1.3000 to head towards 1.3100 and previous highs around 1.3160.