Euro Hits a 3 Year against the British Pound

Points to consider in this Euro Forex market:

• Euro breaks through the July swing top to touch a three year high.
• Price action is trying to secure the longest win streak since January 2013.
• Trade strategy: Stand aside

The EUR/GBP Forex market continues to push higher. Price action has now broken through the July swing top high and has hit a new three year high. If price action continues to move higher today, we will have the longest win streak in this Forex market since January 2013.

Euro Technical Analysis

Let’s discuss today’s EUR/GBP daily technical analysis. A daily close above the near term technical resistance level at 0.8761 opens the doors to challenge the next upside barrier lining up at 0.8885. The alternative euro analysis, should this Forex market fall lower, notes technical support within a cluster zone that runs to the July 6 high. This area runs from 0.8628 to 0.8640. A break below this first support level challenges the next downside barrier that lines up at 0.8490.

Trade Strategy

Let’s discuss today’s trade strategy for the euro/pound Forex market. Price action is too close to a technical resistance level to place a long EUR trade. From a risk to reward outlook, this move is too premature. There are no bearish reversal signals to warrant a short EUR sale. For now, I will opt to stand aside and continue monitoring my charts until a better trade opportunity comes along. For now, I am flat in the EUR/GBP Forex market.