FOREX - EURGBP - BEAR TREND ACCEELRATION SIGNAL

Technically the EURGBP is in a BEAR TREND ACCELERATION position and is vulnerable to the offer. Any positive corrective action is expected to be short lived with only one upside "stop squeeze" if the negative moemtnum is going to play out. Any held strength and repeated probe higher is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.



Key off the 9021 Inflection Pivot for an indication of the session tone and confirmation of the negative signal.

On the SELL side accept FADE, REVERSAL and BREAKOUT strategies against the 9021 Inflection Pivot and below the Friday's high at 9071. BREAKDOWN strategies should just "go" BELOW 8978, so do not risk much. FADE strategies are recommended over REVERSAL strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.

On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the 9021 are aggressive as it is a counter trend trade, so risk less and use smaller size. Any BUY FADE should have confirmation and are not recommended if the integrity of the 9021 Inflection Pivot level is intact. After a break in the negative structure is confirmed support levels can be used for short term reactions using aggressive position management.

Note: The MKT is in an aggressive sell posture. If the intergrity of the 9021 Inflection Pivot is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the 9021 level is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.


Good Trading


JS

Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Reviewhttp://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.