Hello Everyone! We have a nice technical setup on EUR/GBP, which looks like it’s ready to continue the trend lower. Fundamentally, interest rates are expected to hike further in both the UK and the Eurozone as inflation remains a concern to both regions, but we will probably see the pair trend lower as the interest rate differential benefits short positions.
Technically, the pair has retraced back up from the recent move down from .6807 to .6731. Stochastics are in overbought territory and may look to turn lower soon. So, let’s see if the pair touches the 61% Fibonacci level before jumping in short.
Short EUR/GBP at .6776, stop at .6805, pt1 at .6756, pt2 at .6735
Remember to never risk more than 1% of your account on any single trade. Adjust your position sizes accordingly.