After a super-charged European session that has weakened the pound sterling nad catapulted the euro, the EUR/GBP has corrected higher into 0.8400. Today’s 87 pips range is pushing the upper limits of the typical price movement range for the EUR/GBP.
Coupled with the resistance waiting between 0.8400 and 0.8380, the EUR/GBP is at a correction level that is likely to exhaust and thus sets up a swing short.
The daily EUR/GBP has reached the 34EMA Wave and while today’s neutral blue GRaB candle interrupts the bearish sentiment and momentum seen in the recent string of red GRaB candles, this is an opportunity to sell EUR and buy GBP as the daily chart has a “four to six o’clock” 34EMA Wave angle and bearish Directional Bias.
The entry is any short above the 0.8350 major psychological level with a stop loss at 0.8455. The initial downside target is 0.8320 then 0.8280
Source: www.forexnews.com
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