Technician

#EURGBP: A Quick short term technical view | #forex

FX:EURGBP   Euro Fx/British Pound
1485 24 22
EURGBP Technical Analysis

The overall trend remains clearly bearish , however the price has managed to gain some grounds in recent days, pulling back higher and retesting the short term trend line and the horizontal resistance area starting at 0.7218 and extends to 0.7238. A good area for shorts if we assume the bearish trend will resume.

So i suggest watching this important area for downside reversal, as RSI is approaching overbought as well. A break below the potential continuation flag pattern might be a good bearish confirmation signal.

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Thanks mate. I was looking at it.
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Technician TOP Shahzad0171
You're welcome .
-1 Reply
snapshot
Also looking to short. :)
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Another simple but reasonable analysis Technician. I'll wait for the breakout from the flag pattern to the downside, to take a short position. Also, do you think it's better to wait for the FOMC statement tomorrow. As we know, the market won't be the same once that statement comes out. Thanks once again and Good Luck!!
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Technician TOP moneymaking
Yes, i will for one more confirmation signal, either for short or long on a breakout above resistance. I usually avoid dollar pairs on FOMC.
-1 Reply
great stuff :)
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Oh, are people still using RSI(14)?
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Technician TOP OccultTrader
Yes I Do
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dojitrader Technician
Just curious ----
Have you tried RSI length of 7 with source of hlc3 ?
I noticed this from David Alcindor and have found it to
be slightly more responsive especially on the shorter time frames.
So, I'm curious if you've tested this format and your results ?
Thanks for your thoughts. Hoping you've put lots of pips in
your pocket so far in 2015 !!!!!!!
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Technician TOP dojitrader
Thanks mate.. I tried dozens of settings for several indicators in my early stage of learning. What i found is that its not about a specific number because i don't use a mechanical trading system. However, for me 14-period RSI at 60 is like 9-period RSI at 70.
Also using a longer term RSI or a short term RSI depends on the current market condition, for example, if the price in a very strong trend, its better to use a short term RSI(i prefer to use Stochastic in strongly trending markets) Because pullbacks are usually shallow.

Honestly, i can see If price is oversold or overbought even without looking even at any indicator, cause its relative to whats the price is doing compared to what it was doing recently.
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OccultTrader Technician
Thanks for the explanation. But still, 14 period is just a reflection of Wilder's old-fashioned half moon cycle perspective. 7 is more respective to the stars and constellations.
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Oh, nice. I'm also looking to short eurgbp at this resistance level:
eurgbp short opportunity

eurgbp short opportunity
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Looks like a genuine breakout for now. It is still oversold on the monthly and weekly.
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Beak of trend line with flag pattern being still valid. Hey technician, where do you think that traders sentiment might turn bullish? All we are seeing here at HH and HL with break of trend line. Is it better to wait for the candle to close above 0.72421, in order to consider this trade setup not longer valid. Thanks !!
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Technician TOP moneymaking
snapshot
-1 Reply
Technician TOP Technician
snapshot
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I took a short in this pair today but got stopped out as price took out the inverse hammer on the 4h. There might still be a bit of life in this retracement
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Yep mate, better luck on the next one
-1 Reply
Hey Technician, if we see an increase in the interest rate, will the US dollar index likely to decrease or increase? Just wanted to know your thought on it. Thanks !!
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Technician TOP moneymaking
For sure there will be no increase in the interest rates. Everyone is watching if the fed will be more hawkish, for example, the fed has re-iterated in recent meetings that it will remain "patient" before raising interest rates, if the statement drops the word "patient" today, that would be considered hawkish( a step closer to raising rates) and that IMO will be negative for the stock market. For the U.S dollar, it might be different and much tricky, because the markets has been pushing the dollar higher for the past months , and could have priced in this to a big extent. So i wouldn't be surprised if i see an initial knee-jerk reaction of dollar strength and then a dollar sell-off, over the short term. On a longer term horizon the dollar remains the kind.
+2 Reply
aziz92 Technician
As El-Erian said, it all depends on wether the fed stops it's 'linguistic gymnastics' and most likely it won't.
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yes, they love that game. But even if they continue to play with words ,unless they make a clear statement that they wont raise before September, any dollar selloff will probably be short lived. Cause markets does believe that they will raise.
-1 Reply
unfortunately macroeconomic data were against GBP, what do you think of going long using the channel and a possible bounce at the resistant turned support which validate the change of the tendency?
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Just a heads up. Price is in the process of putting in a reversal on the daily. If things continue like this then this might be the confirmation that the upside momentum is spent
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