Top Trade Idea For November 20st, 2014 – EURGBP
This week I would like to take a look at the eurgbp pair as from my point of view there is still room to go to the upside and therefore would favor a move above 0.81, having 0.8104 and 0.8194 targets while 0.7900 would be the invalidation level.
The thing is that the 0.800 level is a pivotal one on the eurgbp as each and every time market tried for it to the upside it failed completely. Why should this time be different?
Well, firstly, because we need an impulsive move, or a five waves structure, to go and reach 0.8104 in less than the time taken for the previous c wave purple to form.
This is mandatory in order to validate the flat pattern for the b wave green and comes in line with a clear break of the 0.80 level.
Secondly, every time market tried for the 0.80 level it met only sellers but each and every time price built energy to come even more violently for it.
Therefore, I am looking that after this re-test, the level to hold as a support now and to see a relief rally above 0.81
From a fundamental point of view, today’s PMI’s in Europe were not helpful, but same situation seems to be in UK as well so all in all a balanced fundamental picture.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.