Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
The Forex market hasn’t produced a ton of opportunities in August.
But as I wrote last week, that isn’t surprising. August has always been one of the slower months for the markets, if not the slowest.
One of the best things you can do when things slow down like this is to limit your trading.
Focus on what’s working and ditch what isn’t.
The EURGBP is a perfect example of a pair that is working for us.
I wrote about the euro cross on August 19 when it looked as though a top was in place.
Then came the break below the 0.9090 area on the 22nd.
I even mentioned how the future direction hinged on 0.9090 in yesterday’s post.
Here’s what I wrote:
As long as 0.9090 holds as resistance, I have to favor selling EURGBP.
But sellers need to take out last week’s low at 0.9040 if they intend to push the pair lower toward the 0.8915 area.
With the EURGBP now below that 0.9090 handle by more than 60 pips, it turned out to be the right call.
Notice too that the 0.9040 area is once again under pressure.
In fact, it looks as though sellers have broken through that area on a daily closing basis.
If that is indeed the case, we should see EURGBP bears defend 0.9040 as new resistance.
My short-term target here remains 0.8915.
It’s the same support area I pointed out on August 19 when we first discussed the potential topping action.
Only a daily close back above 0.9090 would negate the idea.
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