We just issued a get ready forex signal for EUR/GBP. We are thinking of buying this forex pair, although we could have bought it right now. But, I love to minimize the risk, so I’m waiting for the price to slip a little lower before pulling the trigger.

This moving average looks like a good spot to buy

If we slip about 10 pips lower, we will reach the 50 SMA (yellow) on the hourly forex chart. That moving average is supposed to provide some form of support, so it’s better to wait until we reach that.    

As you can see, the stochastic indicator is also oversold, which means that the retrace on the hourly EUR/GBP chart should be over.

The H4 chart on the other hand, is a mixed bag. The stochastic is headed down and is somewhere halfway on the way down, but the previous candlestick formed a doji, which is a reversing signal after the bearish candlestick prior to that. Anyway, I’m putting my trust on the H1 forex chart, so I will go long any minute now.