The formation of the medium-term ascending model continues. The EUR/GBP pair reached the weekly control (KZ)1.2519-1.2503, which made it possible to record some of the purchases made at the beginning of the week.
Medium-term plan.
For the entire current week, the pair traded between two weekly KZ. The support was in the zone of 1.2370-1.2354, and the resistance is in the range of 1.2519-1.2503. To continue the formation of the ascending pattern, the trade must close the day above 1.2519 level. This will allow maintaining some portion of the purchases and look for new prices to open long positions. If the pair failed to overcome the weekly KZ, there is a high tendency that the formation of the flat zone will be completed by the extremes of the current week.
Movement within the formed accumulation zone is the simplest model for completion since it does not require to wait for favorable prices and fixation. But it is possible to work from weekly extremes.
Intraday plan.
As the pair reaches the weekly KZ 1.2519-1.2503, it shows the need for partial fixation of a long position. The determined support is the NKZ 1/2 1.2438-1.2430, testing this area will allow obtaining more favorable prices for the purchase. Within the framework of an upward medium-term impulse, purchases from the zone limits will be a good deal since it does not require for large stops. The above control zone is located within the daily average, which can be reached today. To break the upward momentum, it will be necessary to consolidate below the level of 1.2430 during US session today.
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.
* The presented market analysis is informative and does not constitute a guide to the transaction.