Pound Plunge On European Negative Opening

Euro and Pound have plunged at European opening times, giving away all the ground gained on Asian session, to break below session lows, as European stock markets opened the session with losses by around 1%, as concerns about Eurozone debt problems reactivate.

Trading Tactics

A failure swing pattern could be an opportunity to Sell GBP/USD.

The buying point is at 1.4570; Pivot point is the take profit at 1.4615;

Fibonacci 38.2% is the stop loss at 1.4480

The selling point is at 1.4458; Pivot point is the take profit at 1.4370;

Previous resistance is the stop loss at 1.4550

Technical: Sterling forms a failure swing pattern and may start a minor downtrend. A move back lower could set up a test of 1.4370

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line downwards; Momentum and RSI (Relative Strength Index) are in a downtrend; stochastic is in a bearish direction.

*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment