After starting off the year being voted most boring pair to trade for Jan. and Feb., the EUR/GBP has woken up out of its slumber by the bulls on parade which today have taken out the yearly high and key resistance at .8407 with a closing print of .8456. This is a strong breakout bar with good clearing distance suggesting this is the Real McCoy (at least for now).
EUR/GBP" title="EUR/GBP" width="800" height="527">Bulls can watch for a possible breakout-retest of either the daily resistance level at .8407 as mentioned above, or take a look at the intraday 1hr chart which offered a slightly different picture showing a pause right around .8433 which was a SH in the breakout move, caused a brief consolidation, the another breakout bar followed by a with trend pinbar rejecting off this level so intraday traders can look for a long here. targeting just shy of .8500 which we believe is the next upside resistance.
After starting the day consolidating towards yesterday’s highs and just below the key resistance at $1762.90, Gold was stuck in a bull flag but then created a great intraday price action setup to get long and participate in the breakout by forming a pinbar which actually gave a false break trapping intraday traders short on the break of the flag, then rocketing up $25 in a matter of hours. Many of our price action traders caught this setup for an almost 4:1 R:R ratio exiting on the close of the bar and have now exited the trade.
In terms of how to get in now, we are looking for a breakout-pullback to the $1762.90 level previously mentioned but with price hanging around the highs suggests very little profit taking thus likely higher prices.