EUR/GBP Daily outlook – 12 December
Early last week started fairly slow for the pair with little movement and direction. Wednesday however saw more action with a modest fall towards the 0.8500 area. Thursday closed with a bullish pin bar and Friday closing as a Doji.
With the market nearing lower support areas again, price action in the latter part of last week suggests we may see the bulls returning before any continuation of the bearish momentum we’ve been accustomed too. A look at the chart below shows the strength of lower support sitting at 0.8500 – 0.8520.
The chart below shows Thursdays bullish pin bar and Fridays Doji. Although a Doji usually suggests indecision in the market, it’s important to take note of the rejection Fridays price has shown to our identified support area at 0.8500 – 0.8520.
The bullish price action rejecting strong support areas opens the doors to the bulls regaining power (at least for the short term) before seeing any bearish momentum continuing. Possible targets could be at 0.8630 which is the next higher level we may see the market find resistance at.
