Hello. My long term view on EUR/GBP, in which I am currently short:
After the 2-leg move up (yellow on chart) I expect the pair to correct over the next few months. My 1st target is around 0.78, roughly the middle of the congestion area of the 1st half of 2016 when EUR/GBP was on its way up, although it may well go even lower (pink). After this multi-month correction, I would expect EUR/GBP to resume rising on to new all-time highs (green arrows)
My current trades have roughly a 3-1 expected reward-to-capital at risk ratio, given where my SLosses sit at present. Hopefully the pair will continue moving down and allow me to lower SL
I am posted weekly chart. And yes, I am intrigued by what forces will make GBP , in its current political mess, outperform the EUR! Brexit reversal?? Who knows!
After the 2-leg move up (yellow on chart) I expect the pair to correct over the next few months. My 1st target is around 0.78, roughly the middle of the congestion area of the 1st half of 2016 when EUR/GBP was on its way up, although it may well go even lower (pink). After this multi-month correction, I would expect EUR/GBP to resume rising on to new all-time highs (green arrows)
My current trades have roughly a 3-1 expected reward-to-capital at risk ratio, given where my SLosses sit at present. Hopefully the pair will continue moving down and allow me to lower SL
I am posted weekly chart. And yes, I am intrigued by what forces will make GBP , in its current political mess, outperform the EUR! Brexit reversal?? Who knows!