October 20, 2009
EUR/GBP Update - Will It Break Below 0.9093?
I've been looking at the EUR/GBP pair today and it's actually very delicately poised at the moment. If you apply the Supertrend indicator to the daily chart you will see that this indicator (which is still green and therefore indicating an upward trend) has flattened out at 0.9093.
Therefore if the price closes below this level at some point then the trend will reverse and I shall automatically be looking for shorting opportunities on the 4 hour chart.
With the price of the EUR/GBP pair currently standing at 0.9106, it's not far off, however if it doesn't happen then there is still plenty of upside potential because the price is currently around 300 points below it's most recent high.
Plus if you look at the 4 hour chart you can see that the price has been consolidating for quite a while now. Therefore it is almost inevitable that the price is either going to break upwards and force a new EMA crossover (which could be a very profitable trade), or it's going to head south and begin a new downward trend. In which case we may have to wait a while longer before we see any downward EMA crossovers.