I couldn’t help but fade this setup despite the fact that longer term, the EUR pairs have just broken out or area looking to do so and so are looking pretty bullish. But it was this EUR/GBP pair that really caught my eye.

Over the past 1.5 months, EUR/GBP has dropped 200+ pips in a very short period of time and has only now clawed its way back up to its original, untouched, starting point prior to the drop. This is usually a shortable setup in its own right, but add to that an FFF fade setup, price over-extension from the 10-EMA, and the rolling over ADX & RSI and it really is a no-brainer.

It may work, and it may not, but the Risk/Reward is very adequate for this kind of a play so I have gone short with a stop just over the most recent high looking for a pullback somewhere in between the 10 & 34 EMAs. If this play is going to work is should pan out within the next couple days. Anything longer than that and that could signify trouble for, as I said, I do like how the EUR is looking more longer term.