Talking Points
- EURGBP responds to major resistance- short scalps favored
- Updated targets & invalidation levels
- Event Risk on Tap This Week
EURGBP Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- EURGBP reverses off multi-year trendline resistance- medium-term focus is lower
- Support objectives at 7334/44 backed by a key confluence at 7277- broader bullish invalidation
- Resistance & near-term bearish invalidation at 7386
- Breach above 7420 needed to shift long bias back in focus
- Daily RSI holding sub 60 / pending support trigger break – bearish
- Event Risk Ahead: Eurozone Final CPI tomorrow and ECB & UK Retail Sales Next week
EURGBP 30min
Notes: EURGBP responded to key long-term resistance this week with a break below the weekly opening range today shifting the focus back to the short-side. The pair continues to trade within the confines of a newly formed descending median-line formation with interim support targets seen at 7344 backed by a key support confluence into the lower median-line parallel at 7308.
Bottom line: looking to sell rallies while below key near-term resistance at the confluence of the October open, the June high and the May high/reversal-day close at 7386. A breach above 7420 would be needed to put the broader long-bias back in play.
A quarter of the daily average true range (ATR) yields profit targets of 17-20 pips per scalp (keep in mind these are sterling pips). Caution is warranted heading into the close of the week with key ECB & UK retail sales data next week likely to fuel added volatility in euro & sterling crosses.
For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk
Relevant Data Releases Next Week
Other Setups in Play:
- EURUSD Long Scalps Eye Key Resistance - Breakout Targets 1.18
- EURAUD Recovery Scalp- Rally to Offer Favorable Shorts
- Webinar: USD Weakness Targets Key Support- Comm Bloc Overstretched?
- GBPUSD Rebound Testing First Resistance Barrier Ahead of BoE
- Webinar: Scalping Aussie Crosses post NFP - RBA, BOE, BoJ on Tap
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)
Struggling with your strategy? Here’s the number one mistake to avoid
