EURGBP breakthrough out of the box#EURGBP has been trading in a box in the last week.
Macro indicators from all sides show the weakness of the GBP, so we expect a breakout LONG with some levels of TP for the short/medium term:
around the 88, around the 89 and then further up to 89.5 and over to be confirmed by technical indicators.
A bit of reassessment was expected to happen at the market opening, but an entry point just above the box with a SL just below it and a first TP at 1:1 Risk-Reward-Ratio should be a good strategy, leaving a second TP to run further up for a bigger return (based on former support/resistance level off the chart).
Prices refer to this chart and may vary with other platform/brokers.
I always discuss and follow up these ideas on my blog.
EDIT :
In actual fact, the market opening left a huge gap in all currency pairs involving GBP.
This brought to an initial covering of the gap, that forces us to reassess the technical analysis before committing to the strategy pre-market opening.
The H4 chart seems to show that the upwards trend is regaining strength and the position for this week for me is still LONG.
Moved the SL just below the upper limit of the box though (already hit the TP1 point anyway).
Long
