Top trade idea for March 8th, 2016 – EUR/GBP
By Gregor Horvat on Mar 8, 2016 04:46:25 GMT
An ending diagonal on EURGBP appears completed after recently broken red support line which suggests more weakness to come, especially if we consider that decline on hourly chart was made by five waves. As such, price should stay under pressure! Also ending diagonals are very powerful reversal patterns and usually makes a trend change in very powerful mode. That said, we would not be surprised if pair will continue back to 0.7500 area in weeks ahead, but only while 0.7928 holds
On the intraday chart below we can already see A-B-C bounce from recent low which is a contra-trend move that can be finished soon as price trades towards the area of a former wave four. First resistance is at 0.77890, while second one appears to be around 0.7812.
Trade plan can be as follows;
Short ½ at market
Sell limit for ½ at 0.7825
Stops for both at 0.7900
Target at 0.7500
Position management: Move stops to breakeven when price declines to 0.7700. Or cancel the second entry and related stops if entry is unfilled when price is at 0.7700.
About Gregor Horvat
Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/ Try EW-Forecast.com’s Services Free For 7 Days at http://www.ew-forecast.com/service
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