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EUR/GBP Caught in a Trap, Watching for a Break

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

Today the EUR and GBP appear to be weak against the CHF. I start out my analysis for the EUR/GBP on the daily chart and I can see the 5 ema is crossing down below the 13, 21 and 233 ema's and the stochastic is pointing down.

EUR/GBP Daily Chart 10/25/11

At the time I am writing my analysis I can see on my 4 hour chart that price is right on the Monthly R1 at 0.8697 right along the 5 ema. Moving on to the hourly chart the 5 ema is crossing below the 13 and 21 and the stochastic is also pointing down. The next weekly pivot level is the M2 at 0.8683.

EUR/GBP 4 Hour Chart 10/25/11

 

EUR/GBP 1 Hour Chart 10/25/11

Finally, moving on to the 15 minute chart I see that price has broken below the daily central pivot point and is riding the 13 ema down with grace. The next daily pivot level to be hit is the M2 at 0.8689. Price is currently trapped within an apex (ascending and descending trend line) and the lower line is around 0.8688 and that does overlap with the daily M2 so a bounce in that area is highly likely. For this pair I would be watching for breaks and retests above 0.8716 for Longs and breaks and retests below 0.8680 for shorts.

Doug Rosen
About Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.
 

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