WEEKLY FX MARKET ANALYSIS EURGBP 7TH – 11TH JANUARY, 2019
This currency has been in a sideways direction since late 2017, and the channel has held its ground up to now. There have been a few false breaks of the channel but the breakouts could not be sustained.
The bulls dominated the market in the late 2018 only to show signs of exhaustion by the weekly pin bars that have formed over the last three weeks. The bulls’ weakness was further demonstrated by the numerous whipsaws and false breaks swing highs and the market price finally finding its way back to the sideways channel.
The bears eventually retaliated with a strong rejection at the resistance level, plunging the prices down which may be an indication of a change in sentiment.
Summary: Since the market prices are back to the sideways channel we will wait for further price action signal(s) to guide us on the direction bias of the pair.