Double Inverted Hammers on EURGBP -- Time to Sell?

9 thg 10, 2014

Yesterday I had my eye on EURGBP, as it appeared like an inverted hammer was forming at a key resistance and Fibonacci level. However, I thought I would wait to see if the pattern completed. Today, I can see that yesterday's candle did complete as an inverted hammer -- and that today's candle is likely to do the same, all at the same resistance level. This price action, coupled with the GBP strength we're seeing elsewhere, gave me the go ahead to short EURGBP in expectation that the pullback is over and the downtrend is ready to resume. I'm short at 7885, with my stop at 7925 and my target profit at 7765.

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