Euro Rally Stalls at a 2 month high against the Pound

The EUR/GBP Forex market has formed a bearish dark cloud candlestick pattern after stalling at a fresh two month high. This suggests that even more losses for the euro are ahead. If you note the below daily MT 4 chart, follow through has been lackluster at best. Price action, at least for now is hovering around the pivot at 0.87.

Euro Technical Analysis

Let’s discuss today’s daily technical analysis in this euro Forex market. There is near-term support lining up at 0.895. a daily close below this first downside barrier challenges the next technical support level lining up at 0.8640.

The alternative technical analysis, for today, notes the first upside barrier lining up at 0.8755. a break above this first upside barrier challenges the next technical resistance barrier that lines up at 0.8810.

Trade Strategy

Now we can discuss today’s daily trade strategy in the EUR/GBP Forex market. From a risk to reward analysis, current price action does not provide an opportunity to enter into ant trade at this time. The available trading range (ATR) is too narrow right now and there are too many headlines around Brexit that can cause sudden fluctuations in price. For now, I will opt to stand aside in this Forex market until there is a clear sign of a break in the uptrend before placing a desired short EUR sale. For now I remain flat in this particular Forex market.