The EUR/GBP pair tried to rally during the course of the day on Monday, but as you can see fell backwards again forming a shooting star. The shooting star of course suggests that the market is going to continue to fall, going along with the long-term downtrend. That being the case, feel that this market will continue to drift lower, and that every time the markets rally from here, I would be more than willing to sell.
Ultimately, I feel that this market goes down to the 0.7750 level, an area that is a significant round number on the longer-term charts. I believe that the market will chop around between here and there, as is the typical attitude of this pair. But the British pound has been so strong lately, making it very difficult to bet against that, and as a result I feel that this market should continue to be one that’s able to be gone to again and again for the sellers.
Never fight the trend that’s this obvious.
I believe one a trend is this obvious, it’s absolutely reckless to work against that as only the foolish would do. After all, with this kind of massive down trend, there is a lot of selling pressure in the marketplace, and that means that we should continue to see selling opportunities every time this market rallies, and although we have a ways to go, patience will make this a very profitable market to be involved in, making this one of my favorite trades for the next several months.
In fact, I believe that we will actually go below the 0.7750 level, and perhaps to the 0.75 level, which is a much more obvious and major area to aim for. In fact, this market will offer a lot of short-term trading opportunities, within the confines of the larger downtrend, making this a nice and easy marketplace to be involved in. I am short of this market already, and then started adding here and there through the binary options market, allowing me to maximize profits without risking a lot in the way of margin. With that being said, every time this market rises, I’m looking to sell.
