8 Jan 2015

5 REASONS TO SHORT EUR/GBP

EUR/GBP H4

I just love it when all the signs are lining up in one direction. Finally I've found a way to scale back in my short EUR/GBP trade. Here are five reasons, why I think this is going down:
  1. Head and shoulders pattern on H4 chart right at resistance and it has already broken the neckline.
  2. Rising wedge formation at the same resistance broken as well.
  3. Broken symmetrical triangle formation.
  4. Broken down from the larger symmetrical triangle formation and tested the old support as new resistance on the daily chart.
EUR/GBP DAILY

       5. Although the interest rate expectations have pushed the first rate hike from Bank of England back the end of this year, ECB is nowhere near, and with a possible QE program from them EUR should be pushed down all over the board.

I went short at 0.7810 with a stop at 0.7885 and target 0.7750 and 0.7530. I am risking 2% on this trade.

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