Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
FX Reversals: EURGBP Breaks Under Final Support

FX Reversals: EURGBP Breaks Under Final Support

Walker England, Forex Trading Instructor

Talking Points

  • 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.

Want to learn techniques for trading intraday market reversals? Join Trading Instructor Walker England as he uses a variety of techniques along with camaraill pivots to determine trading opportunities. Registration is FREE for Thursdays LIVE webinar event, using the link below.

FX Reversals LIVE Webinar

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.

Previous Market Setups:

FX Reversals: GBPUSD Market Breakout

FX Reversals: EURUSD Reversal Range

FX Reversals: AUDUSD Morning Breakout

FX Reversals: USDCAD Morning Breakout Update

FX Reversals: USDCAD Tests Support

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES