It was a tough tonight, but I managed to find a good setup on a pair I havenât posted on here yetâ¦EUR/GBP! I rarely look at this pair, but thereâs a lot of potential movement in these two currencies in the next 12 hours. We have interest statements out of both banks coming up at 7:00 am EST from the Bank of England and 7:45 am EST from the ECB. Also, we Euro-zone PMI coming out at 4:00 am EST. Now Iâm favoring a long trade for a few reasons: 1. Expected positive retail numbers out of the Euro-zone. 2. Central Banks diversifying their reserves with more Euro purchasing. 3. Recent economic weakness in the UK has lead to Pound weakness. Weâll keep and eye out for hints of a possible rate cut. Of course, in the markets you can be totally wrong! UK may decide to raise interest rates, weak numbers may come out of the Euro-zone, all the oil in the world may dry up, or pigs may learn how to fly! Whatever it may be, surprises are always around the corner, so itâs a good idea to be prepared both ways. So, if the pair decides to drift higher Iâll look to buy at 0.7030 with a stop at 0.6990. Close half of position at PT1 ( 0.7055) and move stop to B/E. Then go for PT2 (0.7085) If the pair drifts lower short at 0.6960 with at stop at 0.7005. Close half of position at PT1 ( 0.6932) and move stop to B/E. Then go for PT2 (0.6880). With the short trade keep an eye out for when it hits the 200 SMA. You might want to start doing a trailing stop depending on how the pair is reacting. Please close opposite order once trade is entered. Good luck and good trading.