EUR/GBP’s Channel Formation Presents Scalping Opportunity
Key Technical Levels
A declining wedge today has seen price action continue to consolidate creating an ideal scalping environment. However, these patterns often lead to breakouts and high frequency traders should be cautious. Taking a longer-term view we see that the bounds from its current descending channel have held firm despite the extreme volatility that the debt crisis generated. The support and resistance levels should be targeted for entering and exiting positions for those with a longer-term view.
The EURGBP’s has maintained its descending channel which has kept its Bollinger band width narrow. At 349 pips its spread is near the bottom of the most traded pairs making it an attractive scalping target. Additionally, its ATR is on the decline and at 114 pips is amongst the lowest of the pair’s listed below. However, one implied volatility readings have increased across the board on the back of rising fears.
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