1 Feb 2017
SAR still trailing the falling EUR/GBP rate
We see an injection of volatility in the already heavy looking EUR/GBP pair.
The washout in today's trading has expanded the Bollinger® bandwidth indicator for four consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing below the 50-period EMA, a bearish condition that should it persist, would help keep the SAR indicator trailing above the price.
A change of direction would be quickly noticed by the SAR, implying EUR/GBP shorts are taking profit. Risks exist the volatility and the plummeting price action extend to higher time frames.
The washout in today's trading has expanded the Bollinger® bandwidth indicator for four consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing below the 50-period EMA, a bearish condition that should it persist, would help keep the SAR indicator trailing above the price.
A change of direction would be quickly noticed by the SAR, implying EUR/GBP shorts are taking profit. Risks exist the volatility and the plummeting price action extend to higher time frames.