EUR/GBP Pulls Back, Price May Bounce

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Getting a better understanding of the majors after the last couple of weeks, we start the Christmas week turning our attention to the currency crosses and EUR/GBP.

The last time we spoke about EUR/GBP on this blog was back at the start of November when the British High Court was slowing the Brexit process and BoE forecasts were being revised up. This all just happened to coincide with that nice weekly resistance level that you can see featured in that previous blog:

“From a trading perspective, price holds higher time frame resistance, then you look for intra-day re-tests to get short. Now go.”

With that trading setup having played out nicely depending on how you managed your risk, price has now pulled back to the previous breakout zone for our next setup on the table:

EUR/GBP daily

EUR/GBP daily

While there will no doubt be the allure of a gap fill as marked by the green line on the chart above, for now this is the first spot to start looking for buyers stepping into the market.

This is a guest post originally appeared on Vantage FX. Reposted with permission.

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