Euro Cross Pick 05.19.10
Following up with the EUR/GBP recommendation from the previous week, the pair retraced the previous day’s decline and rallied to a high of 0.8569 during the overnight trade to maintain the narrow range carried over from the previous week. As price action continues to hold below the 20-Day SMA, the short entry from 0.8640 has yet to be filled, and the pair looks poised for a breakout in the short-term as the pair continues to congest within a descending triangle. As a result, I have moved down the entry to 0.8588, the 20-Day SMA on 5/19, and will now look to target the yearly low at 0.8427, with the stop at 0.8630, the 4/29 low.
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