Weekly
Daily
The Weekly MACD has ticked downards, suggesting a resumption of a downtrend for this pair. The value of the Euro is very news-driven at present so I'm cautious. Thank God for stop loss values :).
The daily chart shows Impulse has been giving a sell signal for 4 days in a row. Price is already hovering near the EMA, and the Force index is slightly positive. Both Triple Screen and Impulse systems favour a sell position.
I see 2 possible trades here: one involves waiting for price to pull back to touch the EMA and selling from there (as described in the title). The other involves chasing a breakout when price ticks below Friday's low. I don't see why I can't pursue both options (as long as I don't risk more than 6% of total equity at any time).
Stop loss for the EMA idea is 50 pips above the EMA value. Stop loss for the breakout idea is one tick above the previous day's high.
Risk to reward: 2.16 : 1
Alternative/Additional Position(Chasing the breakout):
Sell EUR GBP at 0.82883, SL 0.83399, TP 0.82225.
Risk to reward: 1.29 to 1
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