Trade Recommendation: EURGBP

The Euro/Pound Sterling pair looks like it could continue the move up that’s been playing out over the last couple weeks.

All Pivots are supportive and there is a clear uptrend intact.

The Daily Pivot Moving Averages turning up is a bullish sign and the Daily Pivot Range bias is up (If the price is trading above the Daily Pivot Range, the blue and magenta dots, then this is a bullish bias and vice versa for bearish bias).

We must wait for confirmation however, and this will increase our chances of success if we buy on strength.

The action to take is to place a buy order to enter the market long if the market trades at or above the ‘A’ up line for 15 consecutive minutes or longer. This will confirm the market wants to move higher. Use your short term or 1-5 minute charts to verify the time requirement. Place the stop loss at the Opening Range low and the profit targets stated below.

This is a very good risk reward ratio trade setup.

Entry Price: 0.883330
Stop Loss: 0.881750
Profit Targets: First profit target .89210. Second profit target is .89510. As the market moves higher on the breakout, trail a stop loss 35 pips until second profit target is hit.

Disclaimer: Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.

Featured image courtesy of Shutterstock.

I am the founder of VirtuesTrading.com, where traders can learn to use my Virtues Trading System. Formerly a Commodity Trading Advisor, I got my start in the Energy and Precious Metals Options & Futures pits of the New York Mercantile Exchange. I operate on the premise of efficient markets, the management of risk through the analyzation of price action and technical indicators. I have a BA in International Relations from the University of Southern California.