“The GBP/Euro saw a vicious spike down on Friday touching a low of 1.2194 term support. The bounce from here was just as sharp and although we are softer in early trade again today we do need to be cautious. Going up through the time frames to the smaller Monthly Chart we can see that this one is actually more stable than most of the other major crosses and there is an argument that we are base building down here. With this in mind we shall watch this one for the moment”.
No change here!
Indicators in play.
Day traders often go down through the time frames to find intra day resistance and support that do not show up on their daily charts. This can give good entry levels to add to a position or warn that the picture is changing. This works just as well going up to weekly charts to keep focus on the bigger picture.
There is little to see here as we are now bang in the middle of the range as shown on the smaller Monthly Chart. We are not keen to get involved here but longer term this does appear to be a base building exercise by the Bulls.