I am with the Amish on this one.  This pair closed below the blue trend line and is headed south…ever so slowly.

I have a final profit target at .7865.  Stop loss at above .7953.

-Dave

Jar Jar called me up and told me about this trade.  I liked it.
On a close below the red trend line, sell and aim for the green.

Stop is above 7959.

-Dave

I’d be happy to sell this pair on a close below the bottom of the channel.

We’re still looking at the same channel, but we have a new idea for it.

A close below the red trendline could take us all the way down to the bottom of the channel.  It’s possible to use a candle chart like the one you see here, or to even use a line chart to show the break of the line.

The EUR/GBP, which we talked about yesterday, has stayed nicely inside the confines of its upward rising channel.  Some of these slowly rising channels are my favorite.  In any case, we’ve already talked about the fact that we can draw a trendline on the inside of the channel and buy a close above that line.

In the past we’ve also looked at the possibility of buying a pair when it hits the bottom of an upward channel.  That was a possibility for us here as well.  It hit the bottom of the channel at approximately .6717, and it has gone about 11 pips higher so far.

Keep in mind that the EUR/GBP is worth about twice as much per pip as the EURUSD or the GBPUSD.  That’s because the GBP is the base currency.  So 11 pips in the EUR/GBP is worth about $22 on a standard lot.  It’s like making double the pips: hence the Chuck & Larry chart below.

I like channels.  We’ve got an ever-so-slightly rising channel here, with Bruce Willis along for the ride to help out.  Do you see how (in the red circle) the pair has stopped cold on the first fibble?  That’s a normal place for the pair to find resistance. 

It looks like we now might have a chance to draw a trendline down across the candles in the channel.  A close above that line could bring the pair all the way up to the top fibble, and then a move higher than that could bring us all the way to the top of the channel.