EUR/GBP – Possible Trend Reversal in this Forex Market

Points to consider in this Forex market:

Euro falls lower. Largest daily drop in a month. Bearish candlestick forming on daily chart.

Waiting on confirmation of bearish reversal before entering short euro sale.

Trade strategy: Stand aside

The EUR/GBP moved lower with prices losing the most in one day in nearly a month. The downward spiral began after the formation of a bearish engulfing candlestick below the rising channel top. This channel has been in play, guiding price action higher since early March.

Forex Technical Analysis

Let’s discuss today’s daily EUR/GBP technical analysis before trade strategy. There is near term support lining up at the end of a cluster zone. This zone runs from 0.7927 to the channel bottom at 0.7950. This is also the February 25 high. A daily close below this technical support challenges the next downside barrier at 0.7850. The alternative technical analysis, should the euro push higher notes the first upside barrier at 0.8015. A break above this technical level challenges the cluster zone running to the channel top. This is area runs from 0.8125 to 0.8145.

Trade Strategy

Let’s talk about trade strategy in the EUR/GBP Forex market. My overall fundamental outlook with the euro remains bearish. I am keen to enter a short euro sale in line with this outlook but without confirmation of a bearish reversal, that move is premature from a risk to reward standpoint. We would need to see a break of the near-term higher highs and low. I will continue to monitor my charts and wait for the short euro sale. For today, I am flat with the euro in this Forex market.

Автоматическая стратегия для форекс