FX Reversals: EURGBP Breaks Under Final Support
- EURGBP Dives off Range Resistance
- Price Broke S3 Support at .7965
- Prices Below S4 Signals Continued Weakness
EURGBP 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURGBP started the week moving lower into the conclusion of Mondays trading. However, overnight, the price of the EURGBP tested key points of resistance. Price quickly moved off this area marked R3 on the chart above at .7977, providing a potential area for range reversal traders to enter into the market. This move was followed up by bad Euro Zone data at 9 GMT pushing the pair quickly towards lower lows. Price not only broke through range support (S3) but continued to break below the S4 breakout value found at .7959
As price declines, traders should keep an eye on today’s last line of support. If price continues to trade below the S4 camarilla pivot, this would denote continue weakness in the currency pair. If today’s trend continues, traders can continue to find selling opportunities on continues market momentum. In the event that price moves back inside of the trading range, this would signal another change in market conditions. At this point, traders should be wary of a false breakout, and consider concluding any intraday short positions.
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---Written by Walker England, Trading Instructor
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