Price has fallen quite a bit following the Bank of England's dovish rate hike, and subsequent fall in the GBP. This is an attempt to capitalize on any additional GBP weakness, or EUR strength.
Brexit negotiations are not going well, and the ruling Conservative party in the UK seems to be stumbling from one mishap to another. This might create some additional jitters that will help to push the GBP down. Although since Brexit is seen as being important to the European Union as well, how much of the negative impact would be shared by the EUR is probably dependent on the headline that day.
Technically, we have not yet reached the long term support and resistance zone, meaning the price may still have further to fall; however, we do appear to have found some support - for now. Stochastic is rising from oversold, and might be showing a bullish divergence of-sorts.
I am trading this with a buy stop limit order to trigger if the price breaches 0.8826. Hopefully this will offer some protection in case the price falls further. Although the price did hit that level already, and fall back, so it might be a little too close to be truly safe. But I'm willing to take the risk with a modest position size.
In the event of the price moving up significantly, moving the stop to breakeven at the first available opportunity might be a wise move.
Brexit negotiations are not going well, and the ruling Conservative party in the UK seems to be stumbling from one mishap to another. This might create some additional jitters that will help to push the GBP down. Although since Brexit is seen as being important to the European Union as well, how much of the negative impact would be shared by the EUR is probably dependent on the headline that day.
Technically, we have not yet reached the long term support and resistance zone, meaning the price may still have further to fall; however, we do appear to have found some support - for now. Stochastic is rising from oversold, and might be showing a bullish divergence of-sorts.
I am trading this with a buy stop limit order to trigger if the price breaches 0.8826. Hopefully this will offer some protection in case the price falls further. Although the price did hit that level already, and fall back, so it might be a little too close to be truly safe. But I'm willing to take the risk with a modest position size.
In the event of the price moving up significantly, moving the stop to breakeven at the first available opportunity might be a wise move.
Comment:
Stop moved to breakeven.
Trade closed: stop reached:
Stopped out at breakeven.
Back to the charts!
Back to the charts!