EUR crosses/GBP crosses/Technical Analysis/Trade Ideas

EUR/GBP trade developing nicely

The potential base at the 38.2% Fibo near .8005 coupled with a possible basing pattern on the short-term charts (see members section) convinced me to go long of this pair yesterday. We are also coming to that time of the month when the Bundesbank usually buys EUR/GBP (up to 1billion) in the open market and I’m hoping this is the case again this month. Deutsche Bank analysts reiterated their call that the cross could trade to .8500 by year’s end (a very bullish call from normally conservative analysts) and this has given me a bit more confidence. My initial target is at .8095 and I expect this pair to now stay above .8015.

  1. Morning jason, generally makes sense to trade it as it moves higher, I’ll only sell smalls there and then hope to increase again on pullbacks. If I get lucky with timing, it can be very effective

  2. Thanks Sean. If this time EUR/USD can’t break 1.3180, does it mean we end up in the range mode again or should we turn bearish on EUR?

  3. If I was a betting man (which I am 🙂 ) I’d have to bet on the range staying in place but of course it will eventually break sometime. Even if we ‘only’ get a 200 pip move to top of range, that’s not a bad trade either

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