EUR/GBP – Euro Hits a 2 Month Low

EUR/GBP (0.7470)

Some points to consider in this Forex market:

• The selloff with the euro continues to accelerate in this Forex market.
• Corrective bounce higher failed to gain any momentum
• Trade strategy: Short euro trade active @ 0.7324. Looking for more profits on a move below the two month low.

The EUR/GBP Forex market has accelerated its fall lower after a rather weak corrective bounce higher. This attempt higher failed as it did not gather follow through. Note the below daily EUR/GBP daily MT 4 chart and the bearish dark cloud cover candlestick. Price action then broke through the rising trend line from mid-July ending the move higher from the low price levels set back then.

Technical Analysis

Let’s look at today’s daily EUR/GBP technical analysis. There is near term support lining up at 0.7125. A daily close below this level challenges the next technical support lining up at 0.7087/88. The alternative EUR/GBP technical analysis, should the euro recover, thus supporting this Forex market, notes former support at 0.7122. A break below this technical level challenges the technical resistance lining up at 0.7202. This is above the 0.72 pivot level.

Trade Strategy

Now, let’s get into today’s EUR/GBP trade strategy. Quite a shock, as I have a short euro sale in this particular Forex market as well. This is in line with my overall bearish euro outlook. I have a short euro trade at 0.7324. I have since booked fifty percent of my trade. The stop loss is now at breakeven and I will leave the trade active to capture further euro downside. Today, I remain short in the EUR/GBP Forex market.