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Long-term trend: long. The maximum accumulation of volumes for the current contract is located in the range with quotes 1.16150β1.16350. Currently, investment operations on the pair are being executed below this range, indicating buyer weakness.
Price is trading in the comfort zone, above the day’s balance level of 1.1607. The price has formed an active engulfing pattern without confirmation at the main support level of 1.1600. The current day’s balance level is an excellent entry point for buyers, only if the price is correctly positioned above the day’s balance. A strong resistance level for the price is around 1.1650, which the price needs to overcome. Intermediate resistance is around 1.1625. A continuation of the medium-term uptrend from current levels is expected. The main support level is located in the area of 1.1585, where it is also favorable to buy the pair. An alternative selling scenario is not considered at this stage. Maximum profit is located around 1.1610. Risk parameters on the buyer side are 17% for the week and 15% for the month. The main scenario for the current day is buying the pair.
The market has begun to confirm the scenario under consideration. The rise, as expected, turned out to be corrective and took the form of a zigzag, where wave b formed as a converging horizontal triangle. Immediately after this, selling activity intensified, pushing the price down effectively. Buyers attempted to correct the situation, but selling pressure remains sufficiently high, and ultimately this struggle will lead to further declines.
The euro enters the Friday session after the ECB raised its rate by 25 basis points to 2.50%. Christine Lagarde pointed to more resilient inflationary pressure, and the market continues to price in the possibility of further policy tightening. However, the decision itself was already largely factored into prices, so support for the euro proved limited.
The price test of 1.3551 occurred as the MACD indicator began moving down from the zero line, confirming the right entry point to sell the pound. As a result, the pair fell about 15 pips. The pound traded calmly during the day. The absence of important US data kept the dollar in a narrow range, and other pairs moved cautiously with it. In my view, until meaningful drivers appear, GBP/USD will most likely continue to tread within tight boundaries.
Price is trading in a comfortable zone, above the day’s balance level of 1.1632. The price is aiming for the main target at around 1.1710. The current day balance level serves as an excellent entry point for buyers. A strong resistance level for the price is located around 1.1685, which needs to be overcome. The price is in the buyer climax corridor area. A continuation of the medium-term uptrend from current levels is expected. The main support level is located around 1.1616, where it is profitable to buy the pair. An alternative sell scenario is not considered at this stage. Maximum profit is located around 1.1610. DS parameters on the buyer side are 16% for the week and 15% for the month. The main scenario for the current day is buying the pair.
Long-term trend: long. The maximum accumulation of volumes for the current contract is located in the range with quotes 1.16150β1.16300. Currently, investment operations on the pair are being executed above the specified range, which indicates buyer strength.
The corrective rally in the considered trading pair likely took the form of a zigzag, where wave b formed as a converging horizontal triangle. The pattern is generally formed, and price has even attempted to decline, but it hasn’t dropped significantly yet. We will likely see a stronger downward move in the near future.
The euro is approaching the European Central Bank’s decision with a nearly fully priced-in 25 basis point rate hike. The signal regarding future meetings will be more important for further movement. Persistent risks of rising energy prices and the resilience of the eurozone economy allow market participants to expect continued monetary policy tightening until the end of the year.
Price is trading in the comfort zone, above the day’s balance level of 1.1623. Price continues to stabilize in the 1.1620 area for a start and growth impulse. The moment of model activation is synergistic with the current day’s balance, providing the best entry point for buyers. In case of updating yesterday’s highs, the growth impulse will strengthen. Price is in the buyer climax corridor.
