Daily EUR/GBP candlestick chart. Last week the EUR/GBP tested the static resistance at (about) 0,7873, without breaking it. This week the currency pair has broken the static resistance (now support) at 0,7873 and has reached the static resistance at (about) 0,8033. The last static resistance has limited the price movement. It doesn’t make any sense to draw the (ex) medium term down trend line: I’ve erased it. Now the market is flat. I’m waiting for a Price Action on the supports.
I’m quoting what I said yesterday about the EUR/CAD currency pair: “I’m waiting for a price action near the static resistance for a new short”. Today it has been a powerful price reaction. To tell the truth it hasn’t been near the static resistance. The price movement has simply sunk under the last relative low with a long bearish candle. A very long one. I’ve considered it as a strong short signal, so I’ve opened a new short (I’ve sold the currency pair at 1,4073).
I’ve just closed the short position that I’ve opened on 27 August. I’ve made a little gain (4 pips). The trend is still down, so I’m waiting for a price action near the static resistance for a new short.
The Happy Trader 