Euro / British PoundShort
EURGBP Monthly Shorting Speculation
Updated
Fundamentally:
I have published today my views on the EUR going into February 12, 2016. I believe that it supports my trade idea to short the EURGBP.
Technically:
EURGBP:
Comment: EURGBP Monthly resistance 50% pullback.
The monthly chart tells us that there will be resistance at 0.7829 around a 50% fib level and the 0.8072 61.8% fib level.
The 1 hour chart has been diverging all the way up to resistance, now at monthly resistance: 0.7829 key level. And there was a reaction there in price. I would like to see it clear 0.7713 to confirm my early entry that we are going much lower. Right now, the probability is still in the favor of the bulls; however, the extra dimension that I see with EURGBP is a fall tomorrow given the EUR bearish catalyst that I expect.
Monthly and 4 hour view:
Alternative View: If the market for EURGBP doesn't move down to 0.7713 but rises, then I expect it to hit 0.7957 and watch for signs of a fall again. I given this thought because the 4 hour chart didn't quite duplicate equally. So, maybe this will just be a pullback, especially, if the world market fire up in a panic frenzy again.
If the alternate view does not play out (and hopefully for my trade sake it doesn't (this IS HARD WORK), then this monthly chart of EURGBP can become a shooting star candle with a nice wick. Then, other traders or investors will hope on the bandwagon to short EURGBP.
I have published today my views on the EUR going into February 12, 2016. I believe that it supports my trade idea to short the EURGBP.
Technically:
EURGBP:
Comment: EURGBP Monthly resistance 50% pullback.
The monthly chart tells us that there will be resistance at 0.7829 around a 50% fib level and the 0.8072 61.8% fib level.
The 1 hour chart has been diverging all the way up to resistance, now at monthly resistance: 0.7829 key level. And there was a reaction there in price. I would like to see it clear 0.7713 to confirm my early entry that we are going much lower. Right now, the probability is still in the favor of the bulls; however, the extra dimension that I see with EURGBP is a fall tomorrow given the EUR bearish catalyst that I expect.
Monthly and 4 hour view:
Alternative View: If the market for EURGBP doesn't move down to 0.7713 but rises, then I expect it to hit 0.7957 and watch for signs of a fall again. I given this thought because the 4 hour chart didn't quite duplicate equally. So, maybe this will just be a pullback, especially, if the world market fire up in a panic frenzy again.
If the alternate view does not play out (and hopefully for my trade sake it doesn't (this IS HARD WORK), then this monthly chart of EURGBP can become a shooting star candle with a nice wick. Then, other traders or investors will hope on the bandwagon to short EURGBP.
Trade active
The wise penguin was right! We are still in the sell zone:
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