As the U.S. session overlap got underway, the DXY continued to move lower today. With the EURUSD moving higher and the GBPUSD moving lower, it was clear a long EURGBP position would be tactical.
An entry was taken risking 12 pips for a potential 41 pips to our daily target at .8679. Price was able to move higher to close above its Asian session high, then on to test the interim swing high from earlier in the U.K. session. As we went into the European close, price stalled and we place our profit stop just above yesterday’s high. The next candle closed the trade.
If the pair continues to move higher, .8700, .8725, .8750 and .8780 are areas to watch. To the downside this pair could retrace back to .8500 and .8472.
Good luck with your trading!