Trade of the Week Summary: Short EUR/GBP
Published by Axel Rudolph, Market Analyst on February 23, 2026
This Week's Trading Opportunity
The focus for this week's trading opportunity is to short the EUR/GBP currency pair. The current trading level is around £0.8745, with a stop loss set at £0.8800 and a downside target of £0.8655. The rationale behind this trade is based on technical analysis, as the EUR/GBP pair is approaching significant resistance levels between £0.8763 and £0.8797.
Historical highs from July of the previous year and November 2023 are near the current price, suggesting that these levels may cap any potential upside. Additionally, the recent price action indicates a possible ABC zigzag correction, which could lead to a resumption of the previous downtrend in the coming weeks.
Previous Week's Trading Outcome
Reflecting on the previous week's trade, the outcome was not favorable, resulting in a stop-out. The analyst noted a challenging start to the year, with four out of the last five trades failing to yield positive results. Despite this, the overall loss since the beginning of the year is limited to 5.65%, attributed to a disciplined risk management strategy of risking only 2% of capital per trade.
The previous trade involved going short on West Texas Intermediate (WTI) oil, which initially showed promise but was ultimately stopped out due to market volatility influenced by geopolitical tensions and price fluctuations.
Summary of This Week's Trade
In summary, the recommendation is to short EUR/GBP at the current level of £0.8745, with a stop loss above £0.8800 and a target set at £0.8655. The analysis emphasizes the importance of technical resistance and the potential for a continuation of the downtrend.