Euro Hits a 2 Week Low against the Sterling

Points to consider in this euro Forex market:

• Euro has hit a 2 week low against the British sterling.
• Short sale remains in play.
• Trade strategy: Short EUR sale at 0.8630.

The EUR/GBP Forex market has moved lower after forming a bearish dark cloud cover candlestick. This Forex market has now fallen to a two week low and has overturned the break above the July swing high. Signs are pointing to something more than a corrective move lower and there are signs further weakness is ahead in this Forex market.

Euro Technical Analysis

Let’s talk about today’s daily technical analysis in the EUR/GBP Forex market. There is near term support lining up at a former resistance level. This first downside barrier is at 0.8460. A daily close below this technical barrier challenges the trend line support lining up at 0.8390. The alternative euro analysis, notes a former support now resistance level at 0.8585. A break above this first upside barrier challenges the August 16 high that lines up at 0.8725.

Trade Strategy

Let’s discuss the trade strategy for the EUR/GBP Forex market. I have a short EUR sale at 0.8630. First target is lining up at 0.8460. Right now the stop loss is set to activate on a daily close above 0.8725. If the first target is met, I will book 50 percent of the profits, trail the stop loss to breakeven while leaving the remaining trade open to capture further weakness in this particular Forex market.

Should be pointed out, that the United Kingdom has yet to enact Article 50 and divorce proceedings from the Eurozone. This will eventually happen keeping volatility in this market. The euro could remain weak for the foreseeable future.