Published On: Thu, Feb 23rd, 2017

EURGBP rally to extend towards key average

InstaForex

Background


Although lower levels were posted yesterday our negative bias was disproved as the market failed to extend to the degree expected. Instead with signals for sentiment at oversold extremes and the market marginally below the 200-day moving average, profit-taking developed. 

The resulting bounce – from an average unbroken since last May – was a strong one and took the cross to a correction of half of Tuesday’s net fall – the Marabuzo line. That level did not break – a factor that introduces a strong note of caution – but our studies are left positive.

Management and risk description


A move to 0.8503 means the stop can be raised to break even.

Parameters

Entry: buy in 0.8485/90 area and at 0.8459.

Stop: 0.8427 offered.

Target: 0.8503, 0.8523 and 0.8550.

Time horizon: intraday, ending 1600 GMT.

Buyers at average

Profit taking

 Long term

Source: all charts CQG. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

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