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AmplaInvestments
Apr 4, 2015 10:17 AM

EURGBP Reversal Short

Euro Fx/British PoundFXCM

Description

Capped by the top of the range with a fib confluence. Selling pressure intensified in the last 8 hours after we made the retest of the CTL now looking for the bearish continuation. First stop around 0.722 with further downside potential.
Comments
AmplaInvestments
Will be looking for a good short entry Monday. Also a potential double top there off the 0.618 fib. We may very easily see a retest of the 0.7 level?
justatrader
I would say, we shouldn't get too optimistic on this drop. UK elections due in a few weeks, so GBP weakness could set in, that could turn EURGBP bullish or volatile. Also depending on who wins, there is the question on EU referendum. Daily charts already signaled a bullish divergence, so it would be tricky to be on the short side when the rally sets in.
AmplaInvestments
A very fair point. I focus mostly on technical trading however by no means ignorant to fundamental analysis. I do see a bearish flag that said, and if i was to use the measured move and take the flag pole and add it on to the break that would give us new lower lows which is interesting. I guess we will have to watch it play out but definitely have a bearish bias just above 0.70500.
justatrader
Yes, I see a Euro weakness setting in across the board. There's not much of fundamentals, so it probably has to do with Greece. 0.715 is what i'm hoping for.
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