The pair traded within the long-term flat range, the beginning of the formation happened in September 2017. Within the framework of this flat, the main target of the downward movement is the January minimum.
Medium-term plan.
The extended flattened movement on the EUR/GBP pair makes it possible to conduct trade within the range boundaries and fix them on opposite boundaries. Today, open short positions need to be held until the moment of testing the weekly control zone (KZ) of 0.8743-0.8726. Reaching this zone, you need to partially fix the sales and moving the rest to the breakeven. In case of the reversal pattern formation, it will be possible to consider purchases in order to return to the February maximum. To continue the fall of the pair, it will be necessary to close one of the American sessions below the level of 0.8726.
The formation of an alternative model has a low probability and it will become possible if the fall in the second half of last week will be absorbed. This will allow us to consider an upward movement, the goal which will be the February maximum.
Intraday plan.
There are a downward impulse dynamics and formation of a reversal model in the lower timeframe. The closing of the US session on Friday occurred below the NKZ 1/2 0.8831-0.8823, which indicates a descending trend. The target of the fall is the weekly KZ 0.8743-0.8726. The test of the specified zone will allow fixing a large portion of the sales. Any growth at the moment will be corrective, which will allow you to get more favorable prices for selling the instrument.
Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone is formed by important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
* The presented market analysis is informative and does not constitute a guide to the transaction.
