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.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Forex: EUR/GBP Technical Analysis – Passing on Long Trade Setup

Forex: EUR/GBP Technical Analysis – Passing on Long Trade Setup

2014-03-13 01:47:00
Ilya Spivak, Head Strategist, APAC
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Support: 0.8348 (Jan 13 high), 0.8304 (trend line)
  • Resistance: 0.8390 (38.2% Fib ret.), 0.8463 (50% Fib ret.)

The Euro looks poised to continue pushing higher against the British Pound after prices took out resistance at 0.8348, the January 13 high, after producing a significantbreakout earlier in the week. Buyers now aim to challenge the 38.2% Fibonacci retracement at 0.8390, with a further push above that targeting the 50% level at 0.8463. Alternatively, a turn back below 0.8348 exposes falling trend line resistance-turned-support at 0.8304.

A long position targeting 0.8390 with a stop-loss set to trigger on a daily close below 0.8348 requires an entry price no higher than 0.8369 to satisfy risk/reward parameters. While this is allowed for by current positioning, a 20-day ATR reading equivalent to the entire trading range in question suggests volatility is too high to employ our strategy within the available parameters. With that in mind, we will pass on this setup and wait for something more attractive to present itself.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_eur-chf_body_Picture_11.png, Forex: EUR/GBP Technical Analysis – Passing on Long Trade Setup

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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

DISCLOSURES

News & Analysis at your fingertips.