Summary:
Source: xStation5
- EURGBP has been trading in a downward channel since the end of April
- The pair has had two false resistance breaks at 0.8635
Recommendation:
Trade: Short EURGBP for market
- Take profit: 0,8560
- Stop loss: 0.8680
Justification:
The British pound has recently started to outperform the euro. EURGBP has been trading in a steady downtrend since the end of April. The pair tried to correct, however, two attempts to break the 0.8635 price zone failed. The area is important not only because of the previous price reactions, but it is also the lower limit of the Overbalance structure. Thus, we see a good chance for a resumption of the decline with a target at the level of the recent lows. We place the stop loss at 0.8680.
Source: xStation5