Forex Trading: EUR/GBP Off 50% Retracement

From the beginning of December through the end of the month, the Euro had a tremendous rally against the Sterling, almost 16 big figures. Subsequently, since the New Year began the pair has sold off 8 big figures and is no hovering around the 90 handle. Looking at a 4-hour chart for the pair, a retracement analysis from the 11/28 lows to the 12/30 highs some important technicals have come into play. Today for instance we see the pair hit the 50% retracement level and rebounded slightly. We will be watching the 4-100 hour moving average to provide some resistance, while a break of the 50% level could lead the pair toward some support at the 4-200 hour moving average. The drastic moves across the board against the Sterling could see some reversals here in the short-term as the currency could be oversold against its counterparts.

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Comment by Mr.Trad3r

2009-01-07 03:58:29

Aside from fibonacci, I would look forward to other conditions like candlesticks and fundamental that can confirm the fibonacci.

However, definitely I will look forward to buy around s2 (0.8935.

Great post, I have added the snippet of your post at my blog Forex Trading Cafe Blog

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