Forex Daily Analysis for the EUR/GBP

Here is a short article I am writing on our swing trade our Forex Trading Service sent out as a signal to members last night. We see this trade as a short term opportunity as the Euro zone had a series of negative news in the last 3 trading days, we also feel Oil will move to the $50.00 level in the next few weeks to help move the GBP towards our EURGBP downward projection. For those of you who are not familiar with the GBP otherwise known as 'cable' it has a direct correlation with OIL. GBP will often move up with OIL and down with OIL. Why is this? Well the British Economy is heavily invested in the OIL industry, we also see OIL cause a risk on environment as of late, this is a very healthy atmosphere for the GBP to move along with the risk.

We maintain a short on the EURGBP with a target at the neckline. we are targeting this area since this is the previous support and we feel this is the safer trade rather than speculate on the 'neckline break' of the shoulders on our chart. One thing to keep in mind is this pair trades very slow and should not be scalped, as you may lose your composure. I have made a short video for your view, along with a chart to explain why we took this trade. I will update within the week on the trade levels. We have posted several key areas for your stops and targets in the members section, depending on your risk appetite and style of trading.