EURGBP Analysis
For the past several months EURGBP has been traveling through this price channel. We can clearly see that the pair is in a downtrend, making consistent lower lows with corresponding lower highs. We are aware that the highs are decreasing more than the lows are, which can sometimes result in price breaking out from the channel and shooting higher. Trading with the trend would tell us that this is a short, but price is not at a great place to look for a short opportunity at the beginning of this week. Therefore, we are neutral for now, watching this pair in order to determine a potential entry point. This week we will be looking for one of two things: 1) for price to come back up and create a potential short opportunity, or 2) a clean break of the price channel and/or the trend. Either one of these things would create a trade opportunity, but if we don't see either, then it will be best to sit on our hands and wait.
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