Both the Euro and the Pound have been relatively strong the past few weeks, from a technical perspective however, the pound has showed strength over the Euro recently, and thus I will look for shorting opportunities on this pair, throughout the day. We have got GBP construction PMI data later on today, so I will trade with caution around that time.

EUR/GBP Daily chart

Price has opened the month below MPP, and created a lower low at 0.8500, which is notably a bullish area zone, and thus I will be cautious with my entry.

EUR/GBP H4 chart

Price has opened the week below and created a low at 0.8500, which is also WM2; also a bullish entry zone. It must be noted however that price is trending to the downside on this time frame, with the 21 below the 55 ma, creating further angle and seperation. Furthermore, price appears to be creating a lower high around the 0.85500 level, which is also role reversal support turned resistance, a psyche number, and is the 61.8 fib retracement level of the downside bearish fib.

EUR/GBP H1 chart

Price is opening the day around the DM3 area, a bearish entry zone, which is also the 0.85500 level, the bearish 61.8 fib, and role reversal support turned resistance. The hourly stochastic is to the downside, but nearly oversold, so I will be cautious with my entry.

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