Euro Breaks the 2 Week Downtrend against the Pound

Points to consider in this euro article:

• The euro has broken the two week down trend against the British Pound. Suggest gains are ahead.
• Final profit booked on short trade as position closed above 0.86.
• Trade strategy: Stand aside

The euro seems to renewing its climb in the EUR/GBP Forex market. Price action, if you note the below daily MT 4 chart, has broken above a trend line guiding prices lower over the last two weeks. The break suggests that a near-term bullish trend from mid-December is back in play or trying to reassert itself.

Euro Technical Analysis

Let us look at today’s daily technical analysis in this Forex market. There is near term resistance lining up at 0.8598. A daily close above this first upside barrier challenges the next technical resistance level that lines up at 0.8678.

The alternative technical analysis note the first downside barrier lining up at 0.8547. A break below this first technical level challenges the next technical support that lines up at 0.8467.

Trade Strategy

If you recall, I had a short euro sale at 0.8605. I booked half the profit at the first objective at 0.8485. The rest of the trade was closed at 0.8558 after the break of the above mentioned falling trend line was confirmed on a daily closing basis. I will now opt to stand aside as there is no trade from a risk to reward standpoint. For now, I am flat in this Forex market.

There also should be some note of the recent comments made by the US top trade representative about Germany colluding to keep the euro low for its benefit. This could spark a currency war and volatility in the currency markets.