Trading EUR/GBP Triangle – Good Pair to Trade Ahead of NFP
Arslan Butt • 1 min read
The market continues to exhibit thin trading volume as investors are staying out of dollar-related pairs ahead of widely anticipated NFP data. Consequently, we can trade the forex crosses ahead of the news as it won’t be getting impacted by the NFP release.
For now, we are looking at the EUR/GBP pair which is in highlights due to Brexit and dovish ECB policies. Despite some of this week’s weaker economic stats, the Euro is on a bullish wave against the dollar.
- On the technical side, EUR/GBP has tested 0.8980 resistance level. In fact, it has formed a bullish triangle pattern which provides slight support around 0.8950.
- 50 periods EMA stays around 0.8960, supporting the FX pair at the same level.
Key Trading Level: 0.8972
Considering the neutral and sideways nature of the market, we have entered a sell position under 0.8964 along with a small stop loss of around 0.9004 and take profit of 0.8934.
Good luck with that.!