Pullback before more up moves?
The EURGBP pair seems to have initiated a pullback, possibly to the 0.8-0.81 area which corresponds to the 61.8-50% Fibonacci retracement from the low of mid-end of May 2016 to the high of mid August 2016. The weekly long-term GMMA (blue group of EMAs) is expanding upwards indicating a high probability that the current price movement is indeed a normal pullback in an well established uptrend. Therefore we might play this pair in two ways: the first (the aggressive way, since it goes against the overall uptrend) is to short the pair from the current high to the 0.80-0.81 area, with subsequent long position form there to the 0.95 area, corresponding to the 127% Fibonacci extension of the pullback. The second alternative (the conservative one) is to wait for this pair to reach the 0.80-0.81 area and go long from there to the 0.95 area.
The overall bias is to more up moves of this currency pair.
Lets see what happens!
Happy trading all!
The overall bias is to more up moves of this currency pair.
Lets see what happens!
Happy trading all!
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