6 Nov 2015

EUR/GBP BOUNCE FROM THE RISING TRENDLINE PREFERS SHORT TERM UPSIDE TARGETS

EUR/GBP DAILY

Yesterday's BOE meeting minutes came out to be quite dovish pushing down the GDP and Inflation data projections.

Because of this - pound experienced major sell-off all over the board. On the EUR/GBP exchange rate the sterling has formed a bullish engulfing pattern at the 3-month rising trendline.

From a longer term perspective this may also be looket at as a major head and shoulders pattern, however, the difference between the two central bank policies is still too wide for such a pattern to play out, even considering the thining interest rate expectations for BOE

I believe the recent development suggests the rate is going to reside within the range and a possible move towards the range highs around 0.7450 is in the cards.

However, first the rate needs to overcome the old support/new resistance at 0.7240 level.

I have closed all of my short positions on the pair and will be looking for selling opportunities at the range highs once again.



For deeper knowledge on how the Forex market works and how to trade it simple check out our Forex Online School

If you don't want to miss any new trade ideas and updates, subscribe to one of our Trade It Simple Signal Service Plans and receive in your E-mail:
  • Entry details
  • Take-profit details
  • Stop-loss details
  • Trade updates
 SUBSCRIBE HERE!


0 comments :

Post a Comment