EURGBP bounce or break at 3 year range support?
Depending on the outcome of Brexit within these two weeks, we could see a bounce or strong break of a 3 year range (since Oct '16).
Either way, a deliberate move at range support is expected:
If range is respected once more, TP: 0.9200 (+800 pips)
If range is broken after 3 years, TP: 0.7400 (+1000 pips)
Catalyst for a break of the range will be last minute Brexit deal by 31 October. One could place SELL-STOP orders below the range to catch the big break as a retest is unlikely for such an event. If expecting an extension, or no deal, then BUY-LIMIT order at range support.
Either way, a deliberate move at range support is expected:
If range is respected once more, TP: 0.9200 (+800 pips)
If range is broken after 3 years, TP: 0.7400 (+1000 pips)
Catalyst for a break of the range will be last minute Brexit deal by 31 October. One could place SELL-STOP orders below the range to catch the big break as a retest is unlikely for such an event. If expecting an extension, or no deal, then BUY-LIMIT order at range support.
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