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Support line: +234 1440 6299

Trade of the day: EURGBP


Last week we saw EUR/GBP hit a very signifcant level at the 0.90326 where it found resistance. Sellers have somewhat taking a liking for this level as there are several times priced has been rejected there. Last Thursday was no expection as a long-wicked bearsish candlestick was printed off this level on the Daily chart ( see fig 1).

This bearishness was most likely instilled by the report that the EU, factoring the hassles involved in a 'Hard Brexit' might consider the option of extending the membership of Britain for another 2 years. Price has further dipped lower consolidating a bearish momentum.

Fig 1. EUR/GBP Daily (D1) Chart
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Current trading bias  would be going short looking to take profit at the 0.8800 evisaged psychological zone of support whilst placing stop at the 0.89352 level for 1:1 risk reward ratio [see H1 chart]. Furtherdown for 1:2 risk reward, sellers can look to take profit at the 0.8750 support zone.

Fig 2. EUR/GBP Hourly (H1) Chart
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Alternatively, a break above the 0.8925 zone would open room for a bullish continuation.