BUY EUR/GBP at market .8460 (again!!!)
Ever since this pair opened with a gap (see chart) on the 24th June, I've been BUYING this pair in anticipation of the gap closing.
Markets hate gaps and will try to close them.
Usually when a pair open with a gap when the markets open, the gap is closed and then price will continue in the same direction as the gap.
Examples of this can be seen on EUR/USD and EUR/CAD, both of whom opened with a gap.
With both these pairs, the gapwas closed and price then dropped.
I expected EUR/GBP to follow this pattern but it has yet to close the gap after 3 weeks of trading.
As can be seen by the channel drawn, EUR/GBP remain in an uptrend.
WR1 (weekly Resistance 1) at .8471 remains an obstacle to EUR/GBP BULLS.
This level has been reached 3x this week and each time the price has reversed.
I've closed my LONGS whenever the price hit WR1 and opened a position SHORT once it was confirmed that WR1 was holding.
I'm back in LONG on this pair with STOP under the lows and under the 200 EMA on H1.
Target is the closing the gap at .8490.
It seems unlikey we will get anywhere near .8490 today and news at 13:30 is unlikely to move this pair much (US Core PCE Price Index).
Markets hate gaps and will try to close them.
Usually when a pair open with a gap when the markets open, the gap is closed and then price will continue in the same direction as the gap.
Examples of this can be seen on EUR/USD and EUR/CAD, both of whom opened with a gap.
With both these pairs, the gapwas closed and price then dropped.
I expected EUR/GBP to follow this pattern but it has yet to close the gap after 3 weeks of trading.
As can be seen by the channel drawn, EUR/GBP remain in an uptrend.
WR1 (weekly Resistance 1) at .8471 remains an obstacle to EUR/GBP BULLS.
This level has been reached 3x this week and each time the price has reversed.
I've closed my LONGS whenever the price hit WR1 and opened a position SHORT once it was confirmed that WR1 was holding.
I'm back in LONG on this pair with STOP under the lows and under the 200 EMA on H1.
Target is the closing the gap at .8490.
It seems unlikey we will get anywhere near .8490 today and news at 13:30 is unlikely to move this pair much (US Core PCE Price Index).
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