EUR/GBP overbought on H1 - looking to SELLOn Friday selling EUR/GBP looked a good thing. Price had fallen out of the up channel it was in and had re-tested the channel and failed to break back.. With RSI overbought I was happy to SHORT this pair down to lower levels.
Mondays open saw GBP weaken quite dramatically and even with EUR/USD falling this was not enough to move this pair south - a clear confirmation of the weakness of GBP.
EUR/GBP is now entering an area of strong resistance coming from the lower channel and historical resistance.
We may move a bit higher from here (.7828) and WR1 pivot lies tantalizingly close at .7858 so ideally we'll get a quick spike up and a rapid retreat.
I've a SELL LIMIT at .7857 on this pair with a 20 pip STOP however if we cross the 200 sma on the 1M chart - I'll go SHORT
