AlexBarclay
Long

EURGBP Ready For Takeoff? (1H)

FX:EURGBP   Euro / British Pound
We've got the UK retail sales numbers coming in tomorrow. Based on all recent data I've seen, this number is almost certainly going to be bad. In fact, it might come in at even worse than expected - and bear in mind, the expectations are already quite low.

Based on the past performance of this pair during UK retail sales releases, EURGBP might be a good choice to take advantage of any GBP weakness by going long.

From a technical perspective, we've seen the price action bounce higher recently, confirming each level as being in play. Now we seem to have found support on one of those levels, which could be a launchpad for a bounce higher.

Stochastic is oversold on the 1H time frame, but not fully oversold on the 4H.

I'm trading this with a buy stop limit order to trigger if the price goes above 0.8951. Bearing in mind that UK retail sales releases can sometimes cause a sharp move in both directions, I'm keeping my leverage low and stop wide. Getting whipsawed out is a real risk.
It looks like a range trading opportunity to me. Sell with a stop around 9025 and take profit between 8800 and 8750. A break above 9025 flips this view...
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AlexBarclay Amichalski_uk
@Amichalski_uk, Based on what I'm seeing on the daily chart I'm inclined to agree with you.
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I still think this could go higher, a bounce from the 0.8900 level is probably the most likely. Price is definitely going up in my opinion.
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@dsfx1, I think so too. We do appear to be at the top of a range on the daily time frame, so maybe a little weakness before future strength?

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