EUR/GBP Pullback. Will Price Bounce?

December 19, 2016

Just five days to go!

After gaining a strong grasp around the majors over the last couple of weeks, to start the final week before Christmas we turn our attention to the currency crosses and EUR/GBP.

The last time we spoke about EUR/GBP on this blog was back at the start of November when the British High Court was slowing the Brexit process and BoE forecasts were being revised up. This all just happened to coincide with that nice weekly resistance level that you can see featured in that previous blog:

“From a trading perspective, price holds higher time frame resistance, then you look for intra-day re-tests to get short. Now go.”

With that trading setup having played out nicely depending on how you managed your risk, price has now pulled back to the previous breakout zone for our next setup on the table:

EUR/GBP Daily:
161219_eurgbp_daily
Click on chart to see a larger view.

While there will no doubt be the allure of a gap fill as marked by the green line on the chart above, for now this is the first spot to start looking for buyers stepping into the market. From here, keep an eye on the @VantageFX Twitter account as the setup unfolds.

Do you see opportunity trading EUR/GBP? Open a LIVE forex account with Vantage FX.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

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