EUR/GBP Monitoring and Reassessing the 4H Setup
* 4H: The powerline to be broken should have been 0.8080, not 0.8090. The 0.8090 was broken, but the market rallied immediately from 0.8080. (Refer to Daily Technical Update 11.23.09 EUR/GBP).
* Now the market is back at its short-term range resistance at 0.9060. The stop-loss based on 2.5ATR was 0.9120, with target to 0.8800.
EUR/GBP Reassessing Reward to Risk in Short-term Outlook
* 1H: This trigger was a bad-timing trigger as it coincided with oversold conditions in the 1H time-frame, and neared it in the 4H time-frame. An approach is to wait for a clean break, than a minor correction. It was neighter a clean break, nor followed by a minor correction.
* The rally however forms a very short-term intra-day setup at the resistance of 0.9060. The stochastic is overbought in the 1H, and nearing overbought in the 4H time-frame.
* A trigger that closes at 0.9040 would yield a 1.5 reward to risk ratio. This is a very short-term outlook, and should reach target or be invalidated within the next Asian/European session. The US session after that is expected to be very quiet as well as US session during the Friday that follow.