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)

This post was written at 0900hrs Thursday 10/09/09, Delay due to technical problems.

I hope you are all progressing with your trading experience and managing to bag some pips from the blogs we provide for your development. Clayton has had a few IT problems over the last few days and will be back on line soon. I take this opportunity to welcome another new blogger to our ranks,Sonia Molina. She will be joining Bijal on our sister site at www.fxcps.com/blog .We wish her well on next stage of her trading education.

I have noticed the EURGBP moving into a nice pattern on the DAILY timeframe and may be worth putting on your watchlist.

We have two anchor points from around a year ago to draw appropiate Support and Resistance trend lines as seen on the below chart. Added to this we have a strong support / resistance line which has been tested over 8 times in that time period. These all add up to the price being squeezed into a corner, What will happen next ?

Price is currently at the resistance line and with interest rate decision in UK today, will this have any effect on price ?

Will we get a BOB, or will we see a reversal towards support ? We do have the support line following th VI below price, forcing it higher and we have stochastics indicating a false reading and strength still in the move.

If we do get a BOB use your ESLT tools to avoid a false breakout. and as always do your own analysis before entering any trades.