any one has any thoughts about the trend of eur gbp?
is this trend reversal or a transient candle stick?
Ignored
It will reverse, because of the nature of the relationship between the two currencies. they will continue to revert to the mean, as they are highly correlated. The EG has ranged for several years now, just take a look at a weekly or monthly chart. this is a great pair for a range method.
do you mean it will go down ? or might reach new highs before turning back.
Ignored
Who knows what it will do tomorrow, that is randomness. However, It is a pretty safe probability that The price will not trend beyond the established range. I have no idea what it will do next week, but I do know if I use a ranging method, I will probably take the maximum from this pair. Of course, the are no absolutes in this business, only what we determine to be an edge.
Edit: my guess is that the further it gets from the mean, the larger the snap back, because of the correlation. It is like a rubber band being pulled tight.
Joined Jun 2006
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Status: Do NOT tilt
|5,708 Posts
i still use my trend following and able to scalp few pips even when this pair is ranging. But this recent upsurge really surprised me in a good way. I hope it will continue to the stars....
well said . loosing money in eurgbp is rare as it always turns back - but might take months so be patient is the key word as far as eurgbp is concerned. recent northern rock's collapse is responsible for the surge but once the news fade and people realize that GBP 's rate is always higher than Eur it will turn back . look at 5 yr graph- clearly indicates that it has reached a peak and further gains are limited and unsustainable.
well said . loosing money in eurgbp is rare as it always turns back - but might take months so be patient is the key word as far as eurgbp is concerned. recent northern rock's collapse is responsible for the surge but once the news fade and people realize that GBP 's rate is always higher than Eur it will turn back . look at 5 yr graph- clearly indicates that it has reached a peak and further gains are limited and unsustainable.
Ignored
that sounds like a very risky strategy. It hit 0.56 a few years ago, it's unlikely to be heading back there anytime soon, though anything is possible.
With a possible fourth wave correction low in place at 0.6831, a fifth wave should try to test up toward 0.6910-22 before succumbing to stiffer resistance and a wave (iv) correction.
well said . loosing money in eurgbp is rare as it always turns back - but might take months so be patient is the key word as far as eurgbp is concerned. recent northern rock's collapse is responsible for the surge but once the news fade and people realize that GBP 's rate is always higher than Eur it will turn back . look at 5 yr graph- clearly indicates that it has reached a peak and further gains are limited and unsustainable.
Ignored
you must realise that it was not a collapse in fact its nowhere near a collapse, its just a typical panic from the public who do not understand how financial markets work, and sooner everyone realise it sooner things wil lget back to normal. that said though, if bank run continues then there might be some problems but then again it will be good target for takeover.
well said, i shouldn't have used the word 'collapse' . Its temp liquidity probs. As a resident of uk i know northern rock has problems but its still a successful corporation over yrs and has tons of assets . Cable is slipping due to panic from investors but soon will find a support as per fib level. prob 2.0025 [ 2yrs channel support].lets see.
What do you guys think is gonna happen with eur/gbp in the next 24 hours ?just opened a position , sell at 0,6916 with sl 0,6945 and tp 0,6838. I based my opening on the fact that W1, D1, H4 and H1 are all on a bearish trend + PPI, IP and MP indicators + prediction of trade balance tomorrow show a rise in the value of the GBP meaning in EUR/GBP GBP goes up so EUR goes down.
