FX Trading Idea – EUR/GBP Follow Through

Since our recommendation 3 days ago, price has managed to stay our stop loss at 0.8830. Price went to a low of 0.8836 and today, it has finally rallied to 0.8900. MACD i still strong and Stochastic is crossing over. Both momentum indicators are hinting of more upsides. We think price can higher to our target at 0.8920. We would recommend bringing stop loss higher to 0.8860 while keeping profit target unchanged at 0.8920.

Price broke above the sideways trading channel and could be heading higher to 0.8920.

MACD has been showing bullish divergence twice before today’s breakout. MACD has been warning of potential low for some time now. Stochastic has also had a bullish divergence warning. 20EMA is turning up now and all these are supporting a price push towards Fibonacci 161.8% or 200%.

Buy 0.8860 for a price rally to 0.8920 with a stop below 0.8830.

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