A Classic Textbook Breakout trade ? Too good to be true ?
The Euro gbp looks like a potential breakout trade out from 0.8868. Looks so textbook that it feels like it is too good to be true lol
However, looking at the forthcoming Brezit negotiations and the troubles of the recent elections, which has resulted in the sharp selloff of the Gbpusd, this may just be a high probability trade.
For the risk averse traders who might be looking for a pullback before longing, 0.8760 might be an area worth contemplating.
A break below 0.8580 will be the first red flag to signal that the Breakout is not responding as how it should.
However, looking at the forthcoming Brezit negotiations and the troubles of the recent elections, which has resulted in the sharp selloff of the Gbpusd, this may just be a high probability trade.
For the risk averse traders who might be looking for a pullback before longing, 0.8760 might be an area worth contemplating.
A break below 0.8580 will be the first red flag to signal that the Breakout is not responding as how it should.
Comment:
The EURGBP had a nice spike especially after Carney's speech reinforced the fact that any speculation of possible rate hikes on the GBP is deemed as premature. This added to the bearish tones of the GBPUSD which was already fraught with many uncertainties.
Comment:
Another choppy day for the EURGBP as it consolidates at the top around weekly range high. This may be attributed to the lack of direction in the EUR and the GBP. The slew of EUR and GBP data should result in a more meaningful price reaction by London session today.
Comment:
The EURGBP has consolidated around the top of the range of the weekly chart for 4 weeks. Will we FINALLY get to see a genuine breakout from from 0.8868.
Comment:
Price broke out of 0.8868 and made a high at 0.8880 before making a low at 0.87944. As long as price stays above 0.8710. this retracement can be viewed as the pullback before the move. Fingers crossed.
Comment:
Data coming out from the eurozone was better than expected while the Manufacturing data from UK was much worse than expected. Even though the EURGBP did break below 0.8760 it was well supported.
Thus fundamentally, Revelation trading reckons that we are still on the right track and hopefully price action can further confirm our bias by breaking above 0.8820 in the near term for this current downtrend retracement to be classified as over.
Thus fundamentally, Revelation trading reckons that we are still on the right track and hopefully price action can further confirm our bias by breaking above 0.8820 in the near term for this current downtrend retracement to be classified as over.
Comment:
The EURGBP is finally moving in the intended direction as it breaks out of the consolidation of 0.8740 and 0.8878. We expect to see a bigger move in our trade moving forward given the fact that market has decided on its intended direction. Hold on tight.
Comment:
After a new high was made for EURGBP at 0.8940 the pair had a deep retracement till 0.8750 . Fortunately it went nowhere near our stop loss at 0.8710 and unfortunate that it did not continue upwards as quickly as planned.
So these are the times when the weekly chart may become a test of one's patience.
Based on price action today 0.8830 is a key level for all EURGBP traders to
take note for more upside . Will see how this trade eventually plays out
So these are the times when the weekly chart may become a test of one's patience.
Based on price action today 0.8830 is a key level for all EURGBP traders to
take note for more upside . Will see how this trade eventually plays out
However, the RT Team views this retracement more as a buying opportunity due to the uncertainty that looms ahead for the GBP, not only because of the upcoming Brexit negotiations but also because of the uncertainty shrouding the new, to-be-formed cabinet after the Hung parliament saga.
As mentioned, 0.8580 will still be the gatekeeper for this bullish setup for the EURGBP.