EURGBP Forex cross supply and demand analysis on the monthly timeframe is showing as two strong imbalances located at and . Both imbalances are pretty strong, the one above is a strong monthly supply level made of a very strong bearish impulse, it’s likely that price will react to it strongly once price retraces to it. However, it could take a while before price ever moves that high unless high volatility is created by a strong event like the one that might materialise at the end of this week, on the 31st January 2020, Brexit. We should stay away from GBP cross pairs this week just in case a severe change happens.
In the meantime, price has been dropping and trying to fill a void, still a lot of room to reach strong demand level at #3. Right now we should be only interested in selling EURGBP Forex cross pair, going against such a strong bearish impulse is not a good idea, unless we start eliminating lower timeframe supply zones on the weekly timeframe.
In the meantime, price has been dropping and trying to fill a void, still a lot of room to reach strong demand level at #3. Right now we should be only interested in selling EURGBP Forex cross pair, going against such a strong bearish impulse is not a good idea, unless we start eliminating lower timeframe supply zones on the weekly timeframe.