Euro Loses 1.2900 Handle, GBP Price Action Heavily Bearish
Second Skies | Sep 09, 2014 02:43AM ET
EURUSD – Loses 1.2900 Handle
As we talked about in our pullbacks into resistance . First level of resistance is at the consolidation base ~1.2923. The top of that base would be another option, while a much stronger pullback towards 1.3100 would be the next level.
GBPUSD – Scottish Vote Weighing Heavily on The GBP
As we discussed in our market commentary this week, the potential Scottish independence vote will keep a bearish pressure on the GBP with the consequences of a ‘yes’ vote having a huge negative impact on the UK and GBP.
Looking at the 1hr chart below, we can see the massive drop to start the week with the cable actually gapping ~160 pips, then dropping another 70 pips throughout the day, offering a good with trend pin bar setup off the 20 EMA .
For now, although we may see a bounce near term, the price action context should remain bearish all week, and I expect the pair to close lower than the current price.
Look to sell on retraces back into key resistance levels , such as 1.6103 and 1.6159/69. Downside targets are 1.6000 and 1.5921.
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