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EURGBP Analysis after ECB holding interest rate at 0%

Thursday, October 25, 2018 12:18 PM GMT

Today, the ECB held its interest rate at 0% while said they will reduce the asset purchasing to €15 billion until the end of December. Traders should keep a sharp eye on the ECB Monetary policy statement and press conference.

After an upward rally the last days, EURUSD hit the major trendline (T1), while Stochastics is overbought. In addition to this, RSI is within 50 to 60 zone, which is supposed to act as a resistance area during a downtrend.

Heading to H4 timeframe, the pair almost reached the 50% Fibonacci retracement level, at the same time as it tested a previous resistance.

Overall, the setup indicates a potential reversal, which maybe offers an opportunity to the Bears. On the other hand, if price violates the trendline (T1) to upside, then the scenario is busted.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

 

 

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