Dynamic Trader Forex Blog FXCPS.co.uk: EURGBP

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = EURGBP : Day Chart (Posted Below)

Starting from the top, you will observe that this cross has been in an up trend on the monthly chart since May 2000, some 9 years ! admittedly between 2003 - 2008 we had a side way movement. Since then we have had a steep climb to almost reaching the 1 Euro : 1 Pound, We are currently at a breather point from October 2008 move up.

The weekly chart gives us some more detail in the activity of Bear vs Bull on the recent (October 2008) movement. We can see prices peaked the tail end of 2008 and have as of yet not made a retest of the high. Early February had price at a Fib breather level before producing a lower high and currently looking to see if a lower low will be produced. Elliot wave would indicate a pullback to the VI being likely and we have not shared coffee since earky March 2007.

Looking at the Daily chart and with the insertion of some support, resistance and trend lines we can get a better feel of where price is currently. Price is currently following the support line drawn as indicated, with VI and Fib breather level below providing a cushion. With stochastics OS and RSI double bottoming at 33, an upward move to either the fib breather levels of March / April or resistance line likes possible.

The 60 mins chart shows price following the support line before a move up to the VI which is currently providing resistance.

Remember the trend is your friend, do your own analysis before entering a trade and ALWAYS us your stop, as well as checking for news items.