Short term
Trade view / 17 October 2016 at 7:31 GMT

EURGBP – Still buying on back of weak pound

Partner at 3 C ANALYSIS / 3cAnalysis
United Kingdom
Background

There was limited net movement in EURGBP last week. In fact three of the five days posted minimal movement with Tuesday’s strong gains offset by sellers the next day. This ‘Doji’ pattern does highlight a degree of investor uncertainty at current levels so analysis has to be made with caution. But with Keltner channels remaining positive, and gains of the previous 5 weeks in the background, we continue to look for opportunities to buy this cross this week.

Management and risk description

A move to 0.9078 means the stop can be raised to break even or better.

Parameters

Entry: Buy in 0.9005/15 area and any 0.8966 dip

Stop: 0.8890 offered

Target: 0.9078 and 0.9119

Time horizon: This week, ending Friday at noon GMT

Demand temporarily stalled:
Demand Stalled
 
Tracking channel higher:
 Tracking Channel Higher
 
Longer-term
Long Term
All charts from CQG

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
18 October
Feders Feders
Hello, with this UK CPI data are you holding this view?
18 October
AlanCollins AlanCollins
yes, movement after numbers remains modest. sterling weakness risk is keeping technical negative for pound.
18 October
Feders Feders
I was scared by others bearish views here over this pair and closed the trade loosing (again). Thanks anyway

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