The EUR/GBP Short Side Narrative Continues to Unfold

Good morning traders,

After a couple of days off following the Socceroo’s qualification for the World Cup in Russia, it feels good to settle back into the groove of markets. Whenever I open up my MT4 charts, it’s always good to see that even though I haven’t been actively updating them, the major daily support/resistance levels are always at least respected.

While getting back into things, I have simply left the horizontal support/resistance zones that have been shown in each of the linked EUR/GBP blogs within this post. I encourage you to go through the backstory blogs and read the the narrative that we’ve been following on the pair.

So getting straight into it, after printing an indecision candle at swing high resistance, EUR/GBP did in fact sell off quite sharply. This is obvious on the daily chart below.

EUR/GBP Daily:

Click on chart to see a larger view.

Following on from that high, you can now see the EUR/GBP level that we were previously looking to manage our risk around, is also back in play as well. As you can see, price is back retesting the level from the underside and this is where today’s opportunity could come from.

If these higher time frame levels interest you from a day trading point of view, zoom into your intraday charts and you can start to look for short term pullbacks into previous short term support turned possible resistance.

Best of probabilities to you!

Dane Williams – Vantage FX

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Source: Vantage FX Blog