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Short-term Trading Idea FX EUR/GBP – Bear Speculation: Trading Along Weekly Pinbar

Trading opportunities for currency pair: a pinbar has formed on the weekly. On Monday it was activated after an opening with a downward gap. The current quote is 0.7787. The target for the pinbar is 0.7690. We need to enter the market from the bounce with a small volume so as not to risk our deposit. The results of the surveys will affect the market until Thursday. The pound is strengthening today; tomorrow it could fall quickly. If the trend line of channel 2 is passed, the road to 0.7503 will be open for the sellers. The idea will cancel with a close of the weekly candle above 0.7995.

Current Situation

The euro has strengthened against the pound from a 0.7565 minimum after the release of disappointing US labour market data and worries of a Brexit. The pair turned on its heel downwards on Thursday on news of the murder of MP Jo Cox, By the end of the week, the euro/pound had fallen to 0.7849. As a result, a pinbar appeared on the weekly.

Look at how a bullish pinbar has formed on the euro/dollar. This means we have contradictory signals. The idea will work if the UK votes to remain in the EU, with the pound strengthening throughout the market. The euro/pound will fall and the euro/dollar will rise.

The market opened with a downwards gap today. The pinbar was activated. It became clear after the murder of Jo Cox that the number of people wishing to remain in the EU is increasing. The pinbar target is 0.7690.

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Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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