EUR/GBP - short ? New to forex trading.

The mva8 is well and truly below the mva21 with a candle showing a large drop in value and yet the stochastics indicate an oversold position.

I have enterred a trade based on the potential GBP interest rate rise announcements.

How much notice should I place on the technical versus announcements.

Is this a good or bad trade?

Stochastics in the oversold area are probably one of the least reliable indicators. Could stay there for weeks. It's when they pop out of the oversold area that you should consider closing the trade. In any case, stochastics are so inaccurate I usually only look at them to confirm some divergence I've seen on a macd or RSI oscillator.

I would close some out at .9000, personally. It's there about now. Maybe re-enter on a daily close below there.

Some barmy rumours about increasing interest rates in the UK and being out of the recession. Well rates are being kept the same but quantitative easing is not being extended.

PS I forgot to say "In my humble opinion". Not feeling very humble at the moment...

I am tempted to close my trade now but will keep it open due to the MVA.

Would you suggest I look at any other indicators?

IMHO I believe EUR/GBP is a pair that requires a bit more then fundies and techs. It has the highest pip value for a reason, and you are risking a large percent of your account(in otherwords less buying power) for this pair. Just careful with it.

Longterm daily chart, E/G looks to be in the beginning stages of a retracement and I'm waiting for that retracement/pullback before making a long term upwards trade.

Short term hourly chart, I have an open Sell position with with a target at 0.8986(pivot). We'll see how that plays out in a few hours.

Indicators are fine if you learn a bit about price action. There is nothing wrong with using what you have, if that's what you're happy with and get used to. Personally I like to look at one ma in any particular time frame and I use trend lines and support and resistance. Oh, and of course round numbers like .9000 !!

Another indicator I use is ATR. It's not an indicator, as such, but I find it useful in calculating profit targets, stop losses and my current pet project, compression when price is ranging and likely to break out.

Thanks Skimester, ATR looks very useful. How many times ATR for stops & Limits

I closed my trade on EUR/GBP and accepted the loss.

This is a big subject but I'm a big fan of ATR and when a respected trader introduced me to his system and it included ATR I was immediately interested.
How to use ATR is governed by your style of trading and so it would be better for you to google or search youtube to learn more about it. Don't go spending any money on these websites, though.