Eur/gbp - Trading Strategy, Trigger Points, and Support and Resistance Levels

Eur/gbp - Trading Strategy, Trigger Points, and Support and Resistance Levels


RBS has given the following trading strategy, trigger points, and support and resistance levels:
TRADING STRATEGY: SHORT here with slightly wider stops above 0.8220 at 0.8240 targets at 0.7951 onto 0.7695.
TRIGGER POINTS:
0.7951 - Annual low so far
0.8223 - Previous significant support level which should now morph into resistance
0.7695 - the 2010 low and longer term objective.
0.8167 - the important 76.4% retracement level from the April June sell off.
0.8143 - Vey close to this weeks high and a significant low from 2010
SUPPORT LEVELS: 0.8096, 0.8095, 0.7951, 0.7695
RESISTANCE LEVELS: 0.8143, 0.8167, 0.8192/97, 0.8222
-The market is rallying nicely presenting better and better opportunities for short positions, still the resistance around 0.8222 looks very strong so stop losses nestled above there make sense for now. The chart shows a pretty bearish picture and emphasises the ramifications of what could happen should that lower trendline be broken. The pattern is a bearish flag pattern and flags are said to 'fly at half mast' suggesting that we are seeing a short term consolidation move within the bigger picture down trend. Incidentally the target almost coincides perfectly with 0.7695 which is the 2008 low and longer term objective. Watch the breaking of 0.8025 today and add to positions as the strategy from yesterday suggests through 0.7951.


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