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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
EUR/GBP At Fibonacci Retracement Level
- Daily and 4H: The EUR/GBP has reached the 0.9040 area, slightly above the projected 0.9030. (Refer to Daily Technical Update 11.19.2009 EUR/GBP). The market is now topping at this resistance area. We mentioned that an inability to rally above the previous high confirms our bearish outlook.
- Now we either look at the 1H timeframe or 4H timeframe. For the 1H timeframe, our projection would be a very aggressive one, possibly to 0.8950. But for the 4H timeframe, we see a possible swing projection to 0.8800.
- The reward-risk assessment shown in the screenshot is for the 4H timeframe.
- Using 2.5 ATR method, we have an upside of 190 pips to a downside of 130 pips, which is approximately a 1.45:1 reward to risk ratio. Note this is based on the 0.8800 swing target.
Fan Yang
Currency Analyst,
Commodity Trading Advisor
