Monday, October 26, 2009

EUR/GBP Clear Five Wave Decline; Bearish Opportunity

In a pair I have rarely traded there is a glaring 5 wave decline as shown in the above chart. It appears that an A-B-C corrective rally may have completed, giving the bears a great opportunity to get short this pair with a stop at 0.9411 or 0.9238 depending on risk tolerance and position size. I am currently short the pair with a stop at the 0.9411 level as that is quite clearly the start of the 5 wave drop and therefore should not be exceeded AT LEAST until the 0.9000 level is broken.

No comments: