The Euro has been falling against the British pound during last two weeks. The British currency has been strengthening due to the situation around the possible delay of BREXIT.
Let’s analyze the prospective.
First, we should pay attention to the 1W TF. In the following picture the currency is approaching the 200 period moving average (0,8558 level). Moreover, there is an attempt to break the support level at 0,8620. Williams %R is deeply in oversold zone (October 2018 was the last time it was at the same level)
As the result we assume that a breakthrough of the support level is unlikely.
Switching to the lower 1D TF and adding MACD and Parabolic SAR indicators it is easy to notice that there is a divergence between the price and the MACD histogram. Unfortunately, there are no buy signals from these indicators.
Result: we think that it is possible to assume that there will be a correction of euro against pound. The signal to open long positions is the returning of the currency above the 0,8620 level with confirmation signals from the indicators.
The main news that has an impact on GBP is BREXIT. The most important events are taking place from 11 till 15 March when the British Prime Minister T. May initiates the voting in the Parliament about the suspending the BREXIT’s deadline.