Published On: Fri, Mar 3rd, 2017

Ending wedge and Fibonacci highlight limited upside for EURGBP



Today we look at short-term counter trend trade in EURGBP. 

Weekly – the eventual bias is to move lower towards the AB=CD formation target and breakout level of 0.7500.

Source: Saxo Bank 

Daily – I believe we are in a large bearish head and shoulders pattern. However, it is likely that the CD leg (of the correction higher) is not complete. The AB=CD target is located at 0.8948. Thursday’s price action posted a Doji style candle at the cloud base. 

Source: Saxo Bank 

Intraday (four-hours) – moving higher in the first inside leg of CD. We have posted a DeMark exhaustion count on the intraday chart so scope for a short-term top to now be in place. 

 Source: Saxo Bank

Intraday (one-hour) – moving higher inside the ending wedge formation. We now look for limited upside. 

Source: Saxo Bank

Management and risk description

There two ways to play this corrective trade:



Sell:at 0.8616    

Stop:at 0.8660       


Sell:a break of 0.8565        

Stop:at 0.8590       

Targets:0.8510 and 0.8465

Time horizon: short term; 3-4 sessions

— Edited by Jack Davies

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on is found here

Feed for all trade views

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>