The upward movement last week was the result of a monthly KZ test and further led to a strong increase in demand. The main target of growth is the weekly KZ 0.8861-0.8844.
Medium-term plan.
The downward movement in March remains the priority in the medium term, therefore, the weekly short-term order of 0.8861-0.8844 is corrective and open doors for favorable prices in selling the instrument. The EUR/GBP pair forms a local accumulation zone, the exit beyond will indicate a further perspective. To continue the downward movement, the return of last week's growth is necessary, and weekly short-term growth requires a consolidation above the opening level of the April trades.
When working with cross instruments, it is necessary to track the component dynamics of the major pairs, since they form the price of the instrument. Both components of the pair have a downward priority, so the continuation of the flat formation on the EURGBP pair has a higher probability.
Intraday plan.
At the end of last week, the formation of a reversal pattern completed after the consolidation above the NKZ 1/2 0.8764-0.8756. The main target of growth is the weekly KZ 0.8861-0.8844. The determining support is located within the limits of the NKZ 1/2 0.8709-0.8701. While the pair is trading above this zone, the upward movement remains the priority. To break the above model, it is necessary to fix the price below the level of 0.8701 in one of the American sessions.
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 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.
