EURGBP rally to dominate backdrop in short term
A gap lower and initial selling took EURGBP to the most negative levels traded for eight years, below .7000. But these extremes provided an opportunity for the market to take profits after three down weeks in succession.
The resulting aggressive turnaround reached almost 2 big figs and took the cross to test the key 13 day moving average. That point held and that fact coupled with an Asian decline adds a strong note of caution to any assessment but signals are judged as positive.
Management and risk description
A move to .7136 means the risk level can be raised to break even.
Entry: .7115/20 area and dip to .7095
Stop: .7061 offered
Target: .7146, .7168 or even .7180
Time horizon: Intraday today
-- Edited by Adam Courtenay
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