I’m hoping that there is an opportunity for me to go short on EURGBP. The British pound sterling has gained its momentum and been lifted by positive employment data and recent polls on Brexit which shows that anti-Brexit is leading over the pro-Brexit. This positive momentum happened in almost all British pound sterling pair, including GBPCAD and GBPCHF just like I mention yesterday.
As you can see from the Daily Chart below, price formed a new low and broke below the daily support level. The level has been rejected several times in the past and I consider the level as the solid one. This level now act as the new resistance level.
EURGBP daily chart
What I’m looking for right now is waiting for the price to pullback higher and retest the level. If the price could reach this old support/new resistance level, I will start hunting for an opportunity to go short. I will also keep my eye on the lower time frame.
EURGBP 4-hour chart
I will also keep my eye on AUDUSD. Price has been selling off since late April. This massive move also supported by RBA decision to cut their interest rate. Recently, price on AUDUSD broke below the daily support level and I will start hunting for the short opportunity.
Just like EURGBP, I will wait for the price to pullback and retest the old daily support level and look for bearish signal around that area.
AUDUSD daily chart
AUDUSD 4-hour chart
