By: John Ursus
Timeframe: W1
Recommendation: Long Position
Entry Zone: 0.8100 – 0.8150
Take Profit Zone: 0.8330 – 0.8380
Stop Loss Zone: 0.8000 – 0.8050
The EURGBP has corrected sharply after it very strong rally. The correction took this currency pair below its 38.2 Fibonacci Retracement level. The sell-off was a triple combination; profit taking by traders after a solid bullish run, strong economic data out of the United Kingdom which gave a boost to the British Pound and economic as well as monetary uncertainty out of the Eurozone.
Forex traders should expect this currency pair to witness selling pressures to diminish as the EURGBP is trading at very solid support levels from where a sideways trade could emerge until a bullish catalyst will allow a retest of the 38.2 Fibonacci Retracement level. An additional bullish factor would be an ECB which may act less than market participants have priced in.
