EUR/GBP trading strategy- Sell EUR/GBP
- Entry price: 0.8620 – 0.0875 area
- Stop loss: 0.88
- Leverage: 3x
- Take profit 1: 0.8550
- Take profit 2: 0.8450
- Timeframe: 2-3 weeks
- Risk-reward ratio: 1:2
EUR/GBP is a cross pair reflecting the differences between the euro area and the UK economies. Also, it reflects the differences between the two majors it represents – EUR/USD and GBP/USD.
In September, the cross met resistance again in the 0.87 area. It looks like it forms a horizontal continuation pattern, after which the market should continue in the same direction as before – lower.
Euro fundamentalsI’m looking for euro fundamentals to weigh more on the cross than the UK ones. European growth is weak, if not insignificant, and Q4 perspectives are not great.
EUR to GBP trade idea takeaways- The risk-reward ratio is an attractive one
- I’m expecting the decline to gain traction once below 0.86
- Don’t insist on a decline of more than 0.84
- A move above 0.8850 would invalidate this scenario
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