Forex Day Trading Setup - EURGBP
I have been looking at this pair for about two weeks since I felt we have come a long way to the upside and the trade is losing momentum. Today we are finally starting to look like a reversal may be in play on some lower time frames. I have begun to short this pair on a lower 30 minute timeframe based on momentum divergence. I will monitor this trade and see if it begins to turn on the higher time frames. It is important to make sure when trading this pair the leverage you use is at a minimal level since contrarian trades are typically riskier.
Here is the 30 minute time frame and you will see the simple momentum divergence that I have outlined in the forex chart below.
We have seen a very aggressive sell off in the sterling in the last six months, going forward we at fxlivedaytrading feel the gbp will rebound over the course of the next six months trading above 1.3000 into fall of 2017.
We feel that the EURO will begin encountering some rough roads as the Greek problem begins to emerge as well as the possibility of geo political problems yet to come. The GBP still has the possibility to withdraw the BREXIT deal and we feel this may be a possibility as Teresa May is losing the battle against the elite agenda.
- Posted by fx_Trader
- On June 20, 2017
- 0 Comments