EURGBP Daily Technical Outlook and Review 25th June

The buyers are beginning to show the upper hand as price is seen rallying towards supply (D/S flip area) at 0.80348-0.80576.

eurgbpdaily

4hr TF.

There were clearly little to no sellers left at the round number 0.80000 and the supply area (D/S flip area) at 0.80053-0.80176, as price burst through both levels with a full-bodied bullish candle.

A drop to the downside could still be seen even though we are seeing price trading out of higher timeframe demand (levels above) as pro money love to confuse the retail crowd. The reason a drop to the downside could be seen is because this would be beneficial to the pros, they require liquidity, sell orders in this case, to buy into, and they can only attain this, by pushing price south enticing sellers to follow and stopping out traders going long on the lower timeframes, thus giving them plenty of sell orders to buy into.

Pending/P.A confirmation orders:

  • A pending buy order (Green line) has been set at 0.79580 just above demand at 0.79405-0.79552. The rationale behind this is because buyers have likely consumed the majority of the sellers lurking around supply (D/S flip area) at 0.80053-0.80176, likely clearing the path for higher prices. A small retracement will possibly be seen to collect more buyers for a rally higher, thus triggering our pending buy order.
  • No P.A confirmation buy orders (Red line) are seen in the current market environment.
  • No pending sell orders (Green line) are seen in the current market environment.
  • P.A confirmation sell orders (Red line) under the S/R flip level 0.81403 at 0.81393 is an area where a reaction is likely, however there were too many wicks north seen marked with arrows, indicating sellers are drying up, thus, the need to wait for more confirmation.
  • P.A confirmation sell orders (Red line) are seen just under supply (0.80869-0.80771) at 0.80752. Confirmation orders were used here because price is trading around a weekly demand area (0.79596-0.80299), which means price could easily consume this supply level as the higher timeframes usually overrule the lower timeframes.
  • P.A confirmation sell orders (Red line) are seen just below supply (0.80647-0.80583) at 0.80293. Confirmation orders were used here because price could easily consume this supply level as we are currently deep within a weekly demand area (0.79596-0.80299), which means price could easily consume this supply level as the higher timeframes usually overrule the lower timeframes.

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Quick Recap:

Buyers are currently seen being in control with both the round number 0.80000 and 4hr supply (D/S flip area) at 0.80053-0.80176 being consumed. A drop to the downside to demand at 0.79405-0.79552 may still be seen as pro money may not have enough liquidity for a push up higher just yet.

  • Areas to watch for buy orders: P.O: 0.79580 (SL: 0.79368 TP:  [1] 0.80000 [2] 0.80583 [May change if any new developments in the market are seen]) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
  • Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: 0.81393 (SL: Will be likely set at 0.81564 TP: Will be likely set at the round number 0.81000) 0.80752 (SL: likely to be set at 0.80900 TP: Dependent on where price ‘confirms’ the level) 0.80293 (SL: likely to be set at 0.80648 TP: Dependent on where price ‘confirms’ the level).

 

For the readers’ benefit:

Price action confirmation: simply means traders will likely wait for price action to confirm a level by consuming the opposing supply or demand area, then entering a trade on a possible retracement, this may occur on the lower timeframes also.

Pending orders: means pending orders are likely seen.

 

 

Source: IC Markets Trading Desk

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