Market Outlook and Analysis (Aug2019 Week5)

Currency Pair: EURGBP

Fundamental Analysis – EURGBP

An optimism in the Brexit negotiations strengthen the GBP. German PM Angela Merkel, giving UK PM Boris Johnson a 30-day date line to come out with a solution for the Brexit.

Technical Analysis – EURGBP

EURGBP H1 Chart: (Trade Review) – Captured another +55pips in the pocket.

After capturing +169pips from the previous week, the EURGBP formed a Bearish Bat Pattern to give us the opportunity to continue a short. A quick test of the PRZ and the pair immediately moved towards the TP1 (+34pips) and TP2 (+55pips).  See last week’s trade idea HERE

 EURGBP H4 Chart: Downtrend intact

After the H1 Bearish Bat short trade, I missed another good opportunity to sell at the resistance Trend Line. The fall of the pair in the past week was strong and we are expecting this move to continue. Looking for opportunities to continue to short.

EURGBP H1 Chart: Potential Bearish Bat Pattern forming

Spotted a Bearish Bat Pattern completing at around the 0.9130/40 zone. This would be a trend trading bearish setup. Will be watching this pair closely next week.