I have been watching EURGBP for a while but needed to wait for further confirmation of setting up a short play, which I will initiate Monday morning.
Notice the failure of continously trading above the longer term 200d MA, consequently forming a large negative divergence formed recently. The FX pair sold off sharply end of Oct from 0.8150 to 0.8000 before retracing. But the last 3 trading sessions and especially the weak close Friday convinced me now to a new short.
- The regression support was broken and the market also closed below the bull-trendline since mid July
- It seems having built a smaller degree head & shoulder formation and is trading the neckline now
- RSI trendline has been broken once earlier and now as a last late confirmation the second time and anyway is below 50
initial S/L I will place above the latest swing high at 0.8084
Profit target 0.7865 area (thats a measurement from the H&S formation), but it 's also possible there will be a total trend change .
cheers KP
Notice the failure of continously trading above the longer term 200d MA, consequently forming a large negative divergence formed recently. The FX pair sold off sharply end of Oct from 0.8150 to 0.8000 before retracing. But the last 3 trading sessions and especially the weak close Friday convinced me now to a new short.
- The regression support was broken and the market also closed below the bull-trendline since mid July
- It seems having built a smaller degree head & shoulder formation and is trading the neckline now
- RSI trendline has been broken once earlier and now as a last late confirmation the second time and anyway is below 50
initial S/L I will place above the latest swing high at 0.8084
Profit target 0.7865 area (thats a measurement from the H&S formation), but it 's also possible there will be a total trend change .
cheers KP