EURGBP: riding the downtrend

Italy’s Prime minister, Matteo Renzi, has suffered a defeat in the constitutional referendum. The “No camp” appears to have won by an impressive 60% to 40% and for today and also the next couple of day I will start to look for opportunity on EURGBP pair. 

The EURGBP has been traded lower since early October and now stall around the 0.8370. This level had become an important level because the price has been rejected twice and moved higher on July and August, as we can see in the daily chart below.

EURGBP daily chart


There is always an opportunity on the daily chart that the price will reject this level and move higher, but since the price on EURGBP has been moving downward lately, I will focusing only on the short trade. This opportunity could emerge quickly and within the days as we can see on the intraday chart (4-hour & 1-hour) below.

Price now stall on the important level that acts as the daily support level. I will watch closely what the price will show around that level and look for an opportunity to go short.

EURGBP 4-hour chart


EURGBP 1-hour chart


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