Euro Pound Trending Range

After all the news yesterday we have more to look forward to. Aside from that lets have a quick look at a technical set up on a chart.

The Euro Pound cross has been in a trending range since the beginning of this year after it's breakout at the end of last year. We are at an Ellipse and the bottom of the trending range with Stochastics oversold. This is a case of reversal now or a breakdown. We favour the reversal but as usual, we will wait for the market to deal it's hand before deciding the direction of our position.
Should we breakdown here then 7600 could be on the cards but also watch for the fakeout scenario. If we reverse then we could have 8000 in our sights.


Chart courtesy of Advanced GET. Data provided by eSignal.

Good trading.

Forex Analysts
Javid Shaik & Anne Chapman