The reason I am shorting the EURGBP are listed below:
1) There has been a very strong resistance line dating back to June with 5 attempts to the upside and only breaking it twice but it has been a zone that is not easy to break.
2) The pair has been in a strong downtrend since early September and I believe it is now in an area of consolidation.
3) Taking the trade now gives me a chance to have very tight stop losses limiting the amount I lose if it goes against me as well.
For the aggressive traders I could place the trade now or I can wait for it to reach .88970 to take a short and have a 10 to 15 pip stop loss for a possible gain of 70 to 100 pips.
1) There has been a very strong resistance line dating back to June with 5 attempts to the upside and only breaking it twice but it has been a zone that is not easy to break.
2) The pair has been in a strong downtrend since early September and I believe it is now in an area of consolidation.
3) Taking the trade now gives me a chance to have very tight stop losses limiting the amount I lose if it goes against me as well.
For the aggressive traders I could place the trade now or I can wait for it to reach .88970 to take a short and have a 10 to 15 pip stop loss for a possible gain of 70 to 100 pips.