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Day trade
/
Sell
Trade view / 11 January 2017 at 6:52 GMT

EURGBP: bearish inverted Hammer points lower

Partner at 3 C ANALYSIS / 3cAnalysis
United Kingdom
Instrument: EURGBP
Price target: 0.8635
Market price: 0.8681
Background

Tuesday’s positive forecast was proved correct yesterday as the market built upon the previous day’s strong gains. Bought to higher levels for a fifth day in a row, EURGBP traded to the most positive prices for nine weeks. 

But the highs were powerfully rejected and profit-taking developed at overbought extremes and outside the top of the daily Keltner channel. The result was a bearish inverted Hammer pattern that points to lower levels, temporarily.

Management and risk description

A move below 0.8657 means the stop can be lowered to break-even.

Parameters

Entry: sell in 0.8685/90 area and 0.8698.

Stop: 0.8729 bid.

Target: 0.8657 and 0.8635.

Time horizon: intraday, ends 4pm London time.

Bearish inverted hammer
Bearish Hammer
 
Highs rejected
Highs Rejected
 
Long term
Long Term
 Source: all charts CQG. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

For more on forex click here

Non-independent investment research disclaimer applies. Read more
11 January
AlanCollins AlanCollins
after triggering the upper sell level prices have dropped 25 pips. Momentum weaker than expcted so suggest reducing prices near .8674 level with stop now at .8702
11 January
yakcay yakcay
Are the target levels still the same?
11 January
AlanCollins AlanCollins
yes but momentum is weak so would be inclined to keep only a small balance below 57 with a stop, if that level is met, lowered to 82
11 January
vik7795 vik7795
hit 57/ thanks
11 January
Norberto Norberto
Hi Alan, coming back to the current USDCHF Call. Is this trade still in place cause timeframe is this week? Thanks in advance!
11 January
AlanCollins AlanCollins
yes - still valid Norberto though given how late in the week we are getting I would keep size limited
11 January
Norberto Norberto
OK Alan tks!

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