Euro Hits a 3 Year High against the Sterling

Points to consider in this euro Forex market:

• The euro has hit a 3 year high against the Sterling as the Brexit aftermath continues.
• There is no trade from a technical stand point, for now.
• Trade strategy: Stand aside

The EUR/GBP Forex market continues to climb higher as the euro has now put in its largest daily gain since the Brexit vote and referendum result that saw the United Kingdom voting to leave the European Union. Price action is now challenging a high not seen since August 2013 as buyers look to challenges the pivot at 0.85. Please refer to the below daily MT 4 chart for today’s daily technical analysis.

Euro Technical Analysis

Let’s talk about today’s daily EUR/GBP daily technical analysis.  A daily close above the first upside barrier that lines up at 0.8595 challenges the next technical resistance level that lines up at 0.8690. The alternative technical analysis, should the euro push back lower, the first downside barrier lines up at 0.8505. A break below this level challenges the next downside barrier that lines up at 0.8390.

Trade Strategy

Let’s talk trade strategy in this particular Forex market. From a risk to reward standpoint, there is no actionable trade at this time. Price action is too close to a technical resistance level to place that long EUR trade. There are no bearish reversal cues to warrant a short EUR sale either. Any trade would be premature at this time. Taking all of this into account, I will opt to stand aside and monitor my charts for a better trade to come along. For today, I am flat in the EUR/GBP Forex market.