EUR/GBP 4 hour chart
Long or Short: LONG
Entry Point: market .8050
Stop Loss: .7990
Profit Target/s: .8200
Reward-to-risk Ratio: 150 pips to 60 pips = 2.5 to 1
Risk percentage: 2%
Indicators: Stochastic
Trade rationale: This pair is channelling again. I remember earlier this year it was also doing the same - just ranging. I think we could see more of the same from this pair. Also with news that even Mervyn King is dovish on British economy, we could see pound be weaker over next couple weeks. I think debt deals have been priced in to the markets so euro shouldn’t fall as much as it has recently.
Trade adjustments: move stop to entry once price is above .8100