Range Breakout

At the end of last year S.J (read his story here) asked me if I trade Euro Pound. I said no mainly due to the fact it ranges predominantly. Of course when I answered the question I had not looked at the market at that time and obviously was unaware it had finally broken out of the range above 0.7000 and was now trending. It subsequently has trended fairly well since then and I have missed out on the whole move.

The chart below shows the daily Euro Pound cross broken out of it's range. The interesting thing here is every time it moves up it goes back in to a comfort zone and produces another minor range formation until it is confident to breakout. Watch for a break out or break down on this one. Currently at 0.382 and a figure which could result in a bearish flag before a continuation in a downtrend or a reversal from a support. On the break out candle use our entry stop loss technique.


Chart courtesy of Advanced GET. Data provided by eSignal.

Forex Analyst
Javid Shaik