EUR/GBP
Until about the middle of January I would have said the market had continued its sideways move of last 2017 into this year as we saw (highlighted on the Daily Chart above) two consecutive closes below all the MAs and the key 50% Fib of the October 2016 - December 2016 move (0.8834) as well as an Indecisive Doji Cross for the January high...and neither were exploited in their moves.
Only on the 17th of January did we see the final impetus away from the Sideways movement take place with a Key Reversal Down. This was hesitatingly exploited but exploited nevertheless and we tested the November and December 2017 lows. The retracement in this case has been limited and has not even managed to overcome the 50% Fib at 0.8834. Hence, this market is starting to exhibit significant Bearishness and why I've moved the bullet point above into mildly Bearish.
Not all MAs are following yet but I ask you to remember that MAs are lagging indicators and slow to move at first. That being said, three are basically pointing downwards so that is sufficient justification. Looking at this, one can look at the action early November 2016-to-date as a Bearish Channel (currently 0.8621 - 0.8906). I'd be interested if we could see the market go below 0.8685 this week and close below 0.8790...that'd make it a Key Reversal Down on the Weekly Chart. However, I am realistic to realise that one should accept what you get rather than dream of Patterns or moves. I'd add one other item, one could look at the last two weeks action and see it as a Halfway Hesitation Pattern. In which case look to 0.8610 as a possible 'X'. Little too early to say yet or even put on the Daily Chart above...However, worth saying.
Support is currently at 0.8730, 0.8708, 0.8685, 0.8647, 0.8623(dynamic), 0.8597 and 0.8552.
Resistance is currently at 0.8760, 0.8783, 0.8800, 0.8834, 0.8855 (dynamic), 0.8893 and 0.8906 (dynamic).
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