We discussed this trade last week but price is now becoming more relevant. We discussed two opportunities to join this pair. The first opportunity is Bullish.n We said if price breaks the channel closes above and hold that would be our sign to go long. Well we got the break and price broke a little far from the channel so we are looking for price to make the correction to the top of the channel and hold. We do not want to see price fall back below the channel. If price holds that will be our signal to buy and we will be aiming .8533. The next opportunity we discussed is a Bearish one. Here we will be looking for price to reach .8533 -.8586 and create a divergence around this range and create a stop. By stop we are looking for a Bearish candle pattern ie Harami, Engulfing, Hammer etc. and that will be our signal to sell. We will be aiming the 20MA of the Bollinger on the Daily chart as our target.
EURGBP trade setup for February 27, 2012
EUR/GBP Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3