SaxoTV
Coleman: Three reasons why I'm buying EURGBP
335 views
Ian Coleman from First 4 Trading outlines the three reasons why he believes that selling pressure in EURGBP will be capped. First, the 61.8% Fibonacci extension level at GBP0.7256 has been exposed. Second, buying on Monday formed a bullish outside day for the currency pair. Finally, a reverse Head and Shoulders pattern has formed on the two and four hour charts.
With this Head and Shoulders pattern in place, Ian is planning on buying one unit on the right shoulder at GBP 0.7265, and buying another unit on a break of the neckline at GBP 0.7305. He has set a price target of GBP 0.7360. A stop can be placed at GBP 0.7240 for the first unit and at GBP 0.7265 for the second unit.
Join the conversation below to be a part of the social trading experience.
Non-independent investment research disclaimer