EUR/GBP has been ploughing the same furrow for a month now.
The 0.8400/8500 range did have an attempt at a break out last week but found the 50 fib level at 0.8517 too much and down we went.
Today we’ve been up again on the back of the UK inflation and price index data. We’ve stopped at the 12 March-17 April high trend line at 0.8490 and just shy of 0.8500
Just above we also have the 100 dma at 0.8499 and mixed in with Mike’s sell orders at 0.8500. Further to the upside we encounter said 50 fib and the 55 dma at 0.8517 so we should have enough to keep a breakout at bay.
As I’m going all gung ho on sterling this week I’ve taken a short at 0.8485 and will add to it at 0.8495 with a stop at 0.8530. The reason for the trade is two fold.
1. I’m playing the improving UK economy trade.
2. I’m playing the 0.8400/500 range edge.