EUR/GBP bearish momentum to resume: 1:2 rr potential

• Sell EUR/GBP
• Entry price: 0.8620 – 0.0875 area
• Stop loss: 0.88
• Leverage: 3x
• Take profit 1: 0.8550
• Take profit 2: 0.8450
• Timeframe: 2-3 weeks
• Risk-reward ratio: 1:2

EUR/GBP is a cross pair reflecting the differences between the euro area and the UK economies. Also, it reflects the differences between the two majors it represents – EUR/USD and GBP/USD.  

In September, the cross met resistance again in the 0.87 area. It looks like it forms a horizontal continuation pattern, after which the market should continue in the same direction as before – lower.

I’m looking for euro fundamentals to weigh more on the cross than the UK ones. European growth is weak, if not insignificant, and Q4 perspectives are not great.

• The risk-reward ratio is an attractive one
• I’m expecting the decline to gain traction once below 0.86
• Don’t insist on a decline of more than 0.84
• A move above 0.8850 would invalidate this scenario

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