This is something what i have been waiting a long time for: a major reversal in EUR/GBP
). I believe it is worth to watch this pair closely. I put 2 red lines: if the price goes up you should consider to go long with a stop a 0,7914. Why so low stop? I looked recently on some major reversals in currencies and was surprised how many times it did a "double bottom"! Example: just look on the bottoming of EUR/AUD
in August 2012.
Personally I believe we may still go a bit lower (0,7910?). I am hesitating to go long here, because of USD positioning and because I believe that GBP/USD
has still potential to the upside. Once there is a clear reversal in GBP/USD
I will go long EUR/GBP
in case o reversal criteria displayed here are met.
Have a nice start of the week!