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EURGBP has been a long-term short play for me since the beginning of the year. In fact I’ve had at least a partial position on since January 14th when the pair broke below multi-year support.
Fast forward to today and we have another great short setup coming off an ascending channel that is best seen on the one hour chart.
EURGBP one hour chart:
This setup was released to Daily Price Action Members today and has played out nicely so far. However there may still be an opportunity to enter short if you haven’t already.
The .7490 level can be seen influencing prices as far back as 1997. Today’s daily close below this level is a huge indication that the bears are in the driver’s seat. It also means that a move back to this level will likely be met with significant selling pressure.
As far as targets are concerned, we have a long-term target that I discussed at the beginning of the year at .7257 with interim support at .7390.
EURGBP monthly chart:
Summary: Wait for a move back to .7490 and then watch for bearish price action. Key support comes in at .7390 with a long-term target of .7275.