Top Trade Idea For July 24th, 2014 – EURGBP
By Mircea Vasiu on Jul 24, 2014 09:33:52 GMT
I would like to take a look at the eurgbp cross this week as it is forming/ending one of the most complex forms of correction on this four hours chart you can see above and from my point of view that is a nice risk reward ratio to get out of this setup.
I am taking about a running variation of an expanding triangle, with the b-d and a-c trend lines expanding, with the e wave being the most time consuming and the most complex wave of them all, with everything fitting into the general picture.
The e wave green to the downside, the one that is channeling too well, is formed out of a triple zigzag, beautifully respecting the waterfall effect.
From a fundamental point of view, Europe PMI’s today helped a bit the general picture but my take is that the strength on the cross is going to come for pound weakness. No hikes anytime soon from Bank of England, plus weaker retail sales today puts pressure on the Queen’s currency.
As a consequence, our recommendation is to stay on the long side for three targets: 0.80, 0.8150 and 0.8290, while having a stop loss at the 0.7850 level. Booking some profits on a break above 0.80 would be wise, and moving stop a bit higher too.
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.
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