EURGBP, 240 min
EURGBP hit my downside target yesterday at 0.7533, right before EUR started rallying and took EURGBP higher and all the way up to the current levels. It took time for the market to move into my target 1 and therefore provided multiple opportunities to engage the short side and benefit from recommendation in the pair.
At the time of writing the pair after getting overbought both in terms of 4h Stochastics and Bollinger Bands is now reacting lower. The upper daily Bollinger bands are now near and market participants have started taking their profits off the table as Carney speaks and thus made the pair vulnerable for corrections. I look to sell rallies in the sell area with a view of buying back lower at the buy area just above 0.76. Should price action confirm the idea, the current levels could work for short entries with a view of taking a mean reversion trade to my buy area at 0.7601-0.7616. The buy area could then work as long entry area with a target near the most recent highs. As per usual, these potential trading setups are subject to price action confirming the ideas. In order to fully understand how to utilize analysis on this page it is recommended that you attend our live educational webinars.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
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