EURGBP heads south again before breaking trendline?
Updated
Hello Traders,
Today we will share with you guys the
EURGBP as it seems to show soon further depreciation towards lower trendline around 0.845-0.85. It currently seems that we see more outflow of capital and profit taking from big investors around the current resistance level. As we believe a further appreciation of the GBP before turning south again in near term underlines the current statement that market may fall a little further again. Also the EUR may have some trouble heading north as it currently flirts with major resistance level. The reaction of the two currencies and the potential outflow in this curreny pair could be decisive if we see further downwards correction or a break of the resistance zone and trend line to head north.
Supported by a significant intermarket sign, which points a potential outflow of capital currently towards two asset classes, commodities and bonds! This may underline this setup as it seems that market will initiate a correction at current levels to test lower trend line again.
Our intermarket analysis always helps us time our trades better. We see a good timing of a potential short trade as our indication hits current outflow levels. Our measurement is currently the ratio of theEURGBP vs. 
DAX,
GOLD and 
DE10YBEUR. Our inter-markets indication gave good accuracy in the past for timing our trades at price relevant levels.
We will be looking for interesting entry levels and keep you updated once we see interesting signs of turning south again.
As always, trading is a probability game nobody is 100% right and always use a stop-loss when trading. Trade with care.
Cheers,
Secrets2Trade
Today we will share with you guys the
EURGBP as it seems to show soon further depreciation towards lower trendline around 0.845-0.85. It currently seems that we see more outflow of capital and profit taking from big investors around the current resistance level. As we believe a further appreciation of the GBP before turning south again in near term underlines the current statement that market may fall a little further again. Also the EUR may have some trouble heading north as it currently flirts with major resistance level. The reaction of the two currencies and the potential outflow in this curreny pair could be decisive if we see further downwards correction or a break of the resistance zone and trend line to head north. Supported by a significant intermarket sign, which points a potential outflow of capital currently towards two asset classes, commodities and bonds! This may underline this setup as it seems that market will initiate a correction at current levels to test lower trend line again.
Our intermarket analysis always helps us time our trades better. We see a good timing of a potential short trade as our indication hits current outflow levels. Our measurement is currently the ratio of the
EURGBP vs. DAX,GOLD and DE10YBEUR. Our inter-markets indication gave good accuracy in the past for timing our trades at price relevant levels. We will be looking for interesting entry levels and keep you updated once we see interesting signs of turning south again.
As always, trading is a probability game nobody is 100% right and always use a stop-loss when trading. Trade with care.
Cheers,
Secrets2Trade
Note
**Notice: If market reaches 0.87, before we open any position, our short setup will be invalid!Trade active
Opened Short position successfully at 0.8645. Initial Target 0.85. Invalidation Level 0.87. Risk/Reward: 2.64Trade closed: stop reached
closed position with -53 Pips
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