Categories: Technical Analysis

Pound to follow the Euro?

Hi friends,

The Euro rise up is a big bluff and there are no doubts about it. Could that push even higher? Yes. But every push up in the EURUSD is a big bluff now as the situation there is terrible and the only ones to buy Euro are people that trade short term.

Today the EURUSD crashed down after Draghi said he expects the growth to be slower. The question is, could the Pound do the same now?

I think yes, and here are the explanations on the chart.

As you can see on the daily chart there is bearish hidden divergence, resistance area and B2B move (Not classical but still) so the bearish pressure is here. (Click to enlarge the charts):

And here is the 4H (Click to enlarge):

On the 4H there is a strong trend line. Once it will be broken, together with the support and the RSI crossing 50 down, the pair will most likely gain a bearish momentum going down to the next important support (And daily 20 MA) at least.

Just remember that it is December now so keep it very small risk. So if you trade forex these days, just make sure to risk small part from your account, even very small. Respect the volume less period.

Enjoy the day

Vladimir Ribakov
http://www.vladimirforexsignals.com/

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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