What are the breakout levels of the three-month range?
The post What are the breakout levels of the three-month range? appeared on BitcoinEthereumNews.com. EUR/GBP is in a sideways trend that has lasted for three months. This trend is expected to extend, but at what point would a breakout from the range be assessed as occurring? How far would such breakouts be expected to travel? EUR/GBP price is in a sideways trend which has unfolded over three months. In technical analysis the received wisdom is that the existing trend is expected to continue until the weight of evidence points to a reversal. Since there is no evidence EUR/GBP has changed trend the conclusion must be that it will continue trading sideways. However, it is a useful exercise to estimate at what levels the sideways trend will have been assessed as ending and a new bullish or bearish trend said to have begun. EUR/GBP 4-hour Chart One method to achieve this is to establish the levels of the ceiling and floor of the range. If price breaks above or below these levels it will probably indicate the trend has changed. An upside breakout will probably indicate a new bull trend is starting and vice versa for a downside breakout. Although the range formed by EUR/GBP’s does not appear to have exact high and low boundaries, it is possible to make a rough estimate of where the ceiling and the floor lie. The floor is easier to estimate since there have been two swing lows that have bottomed at the same level, 0.8502. This is illustrated by the horizontal red line on the chart above. The range ceiling is less clearly defined. The very highest peak in the sideways market was achieved on March 22 at 0.8602 (circled). Another level that could be a ceiling is at 0.8585 where price has topped on two separate occasions (green horizontal line) and even 0.8571 where price has touched…
The post What are the breakout levels of the three-month range? appeared on BitcoinEthereumNews.com.
EUR/GBP is in a sideways trend that has lasted for three months. This trend is expected to extend, but at what point would a breakout from the range be assessed as occurring? How far would such breakouts be expected to travel? EUR/GBP price is in a sideways trend which has unfolded over three months. In technical analysis the received wisdom is that the existing trend is expected to continue until the weight of evidence points to a reversal. Since there is no evidence EUR/GBP has changed trend the conclusion must be that it will continue trading sideways. However, it is a useful exercise to estimate at what levels the sideways trend will have been assessed as ending and a new bullish or bearish trend said to have begun. EUR/GBP 4-hour Chart One method to achieve this is to establish the levels of the ceiling and floor of the range. If price breaks above or below these levels it will probably indicate the trend has changed. An upside breakout will probably indicate a new bull trend is starting and vice versa for a downside breakout. Although the range formed by EUR/GBP’s does not appear to have exact high and low boundaries, it is possible to make a rough estimate of where the ceiling and the floor lie. The floor is easier to estimate since there have been two swing lows that have bottomed at the same level, 0.8502. This is illustrated by the horizontal red line on the chart above. The range ceiling is less clearly defined. The very highest peak in the sideways market was achieved on March 22 at 0.8602 (circled). Another level that could be a ceiling is at 0.8585 where price has topped on two separate occasions (green horizontal line) and even 0.8571 where price has touched…
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