EUR/GBP- Breaking out of a Weekly Trap

By: Doug Rosen

This pair broke the bottom of its trap, but bounced off the Weekly 144 ema up to the 55 ema which also appears to being crossed by the 5 ema which is also at a swing Fib 38.2 on the Daily and just a bit under the Daily 13 ema, price looks like it is being pushed down even further.



While looking at the 4 Hour chart it looks as like price could ride its way back up the 5 ema to the 0.8690 area which would be an excellent area to take a short since it would be at the 50.0 Fib Level as well as the Monthly S1, however, if price doesn't make it up that far then I will be prepared to take a short when the 4 hour 5 crosses below the 13 ema and Stochastics is in the overbought zone and looks like it can cross back down soon.



Looking at the Hourly Chart it appears we have done a near perfect 50.0 Fib to the downside, overlapped with the Weekly Central Pivot Point and the 144 ema I can only think bearish with this pair. Price is bouncing off the 55 ema so I am really hoping price will make its way back up tot he 0.8680 region which just happens to be yesterdays high and could also be conceived by traders as a double top giving me another opportunity to catch this short from the top and try to take it all the way down to 0.8594.