Tuesday, October 27, 2009
EUR/GBP Trade Tracking Nicely
Just a quick update on the EUR/GBP trade I mentioned in a previous post (http://principleanalysis.blogspot.com/2009/10/eurgbp-clear-five-wave-decline-bearish.html). The pair continues to fall after the 5 wave drop and 3 wave corrective rally. I recommended a short position here at about the 0.9142 level and it's now at the 0.9042 level, 100 pips in the profit. I expect the pair is at the verge of a significant decline, so I feel that rallies should be sold with stops at 0.9411 or 0.9238 depending on risk tolerance. A break of 0.9000 result in an acceleration of the downtrend.
As long as the pair trades beneath 0.9411, I will remain bearish for the foreseeable future.