EUR/GBP make or break level (29.08.2013)

EURGBP 29.08.86

EUR/GBP has been moving upwards for the past week, but yesterday’s drop makes it a good opportunity to get back in and buy it.

Read about the Trend/Wave/Extreme system here

EUR/GBP has moved higher during the past week. Today it has retraced significantly and the chart in addition to our Trend/Wave/Extreme Indicator tells us the following.

EURGBP(4-HOURS) BUY

  • the Trend Bar is green filled pointing an Up-Trend
  • There’s a rising upward trend chart pattern
  • Extremes Bar is in the oversold region.
  • A supper strong support at 0.8580 ,which has been tested over 5 times in the past 2 weeks and is also the 50% retracement level holds strongly.

Seems like a downwards correction is close to completion and  is ready to rise again.

NOTE: Wait for a second up consecutive candle before buying as this is not a perfect buy signal yet.

If you plan on going long on this trade place a Stop Loss at around 0.8550.
The break of the 0.8580 could see the pair completing a reversal and move much lower.

An alternative scenario would be to sell this pair if you see a strong break of this support level.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.