I’m holding a short position in EURGBP and looking to add. Here is what I am seeing in the charts as we enter the Lon/Eur session .
Best to take a glance at the trio of EURGBP, EURUSD and GBPUSD when setting up this cross trade.
EURGBP is struggling. We have a rough head and shoulders on the D1-H1, hardly textbook, but the shape is there with a clear neckline. Some nice bearish candles to keep my bias short Med-term and now resting on the 50% of the large trend higher from Apr-Aug of this year .
EURGBP-D1
As we look at the H4 chart we can see a near-term resistance level at 0.8825
EURGBP-H4
The EURUSD chart below shows the 1.1670 neckline holding yesterday (my short is still in play) and a re-test is perfectly normal behavior for a H&S pattern .
EURUSD-H4
GBPUSD Is pushing up against H4 resistance at 1.3215 at the time of writing and the 38.2% of the recent swing low. The area around 1.3267 will be crucial to further topside, as we have resistance at the high of the aforementioned swing low and the 61.8 fib of the larger decline from the Sept/Oct high- lows.
GBPUSD-H4
All to play for going into Tuesday. Setting up for an interesting day with current news events and data playing a major part as always .
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There will be a couple stress tests to this position , month end with its usual eurgbp demand and especially Thursday’s BOE . I fully agree with being long some form of GBP. I added small long GBPCAD to my ptf last night night as oil seems to top and BOC took the wind out of CAD. May add EURGBP later
Yep.. Hopefully things will become clearer in the days ahead. I quite like the look of GBP on some of the crosses .
I’d consider looking at shorts up around the broken 1.1690/1.1700 level, just to test the former support. We’ll probably see 1.1680 showing first.