Eklavya - EURGBP

I am starting this weekly thread so I can post my weekly analysis of EURGBP. I am going to use my analysis for making up my bias for the following week. Please feel free to comment on my analysis. I guess using a different perspective will only be better.

I expected the past week to be an up week. However we had a down week. I am still bullish on this pair as I am neutral to bullish on EUR and bearish on GBP. Either of these two scenarios playing out will pull this pair up this week. I will look to go long if the prices close above the minor resistance on the 4 hr chart. Will have a tight stop in case I am wrong.

Hi Eklavya,

I hope this is not swaying from the intentions of your thread.

Would today (Jan 25, 2008) not intitiate an entry short as defined by a head & shoulders pattern on the daily?

Regards,
lucidlamp

Hi Lucidlamp,

You are most welcome to post and initaite discussions on this thread. After all the forums are meant to share thoughts.

Yes, I agree with you in that EURGBP should be going down. However it is at a key Fib level and it is important that it break through that convincingly to confirm further retracement down. I would initiate a short entry once the pair breaks under the neckline(Fib 23.6), come back up and tests the neckline and turns back down. I would wait for the entry setup on the 4 hr charts.

Just found this post and would be interested in what you had to say. I'm always learning too.