EURGBP Projections

This is a continuation of a previous idea with the Dots as milestones or projections as price targets in time. This time 2 rectangles are added for representation of potential support/resistance levels, or zones of influence in case of consolidation, especially at the red one, in case the price even touches it.

For better understanding the concept, the linked idea can be analyzed. All potential pivot points/reversals/turnarounds should occur with any type of Japanese Candlestick patterns, also having a close look at candlestick shadows that might indicate a change in sentiment in the near future.

Comment:

The price never reached the orange dot. Bearish engulfing pattern emerging (not finalized) and a probability to go for the next dot instead of the green rectangle. This is swing trading. Another option would be to wait for the pullback and only with a pivot point/reversal signal preferably near the blue dot (if it is reached or above it) to go long with the recent medium term momentum targeting the green rectangle.

Comment:

For the long biased waiting for the pullback mentioned in the previous comment, this could be another potential opportunity with this candlestick that looks like a harami. I was expecting a move towards the first blue dot but but it seems the price is staying above the 3 dots that are pointing towards the rectangle.

Comment:

First blue dot. One more needed.

Comment:

Quite a bearish wave, not sure where it will end. Added a time stamp for the first blue dot, and an additional yellow ellipse for potential pivot points or bounces/exceptional events. The main scenario still holds, with the dots as potential projections, even though confidence level has diminished a bit. Another hit on another dot would still confirm the relevance of this project.

We had a main bearish engulfing as a signal, ending up as a dud followed by that up wave that looks like a potential stop loss hunt move, followed by the drop that eventually touched the proximity zone of the first blue dot.

Comment:

Early in the day, the candle on the daily looks like a Harami, at the time stamp of the blue dot, right at the marked price level. A serious contender for a potential pivot point.

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Interesting support with candlestick shadows in this area.

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I liked the weekly candle that looked like a potential pivot point. Unfortunately this is still idle between the white rectangle support zone and the green marked price level. Not confident in a bull run, but that weekly candle still looks good and the last purple dot also looks good. If the price avoids the red rectangle it is a complete disaster.

Comment:

The formation at the bottom proved to a be a pivot point. Might not look steamy enough for a proper impulse volatile run upstairs, but it could attempt to slowly climb on the yellow ellipse.

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Some sign of weakness for the bulls. Two candlestick shadows at the red marked price level.

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A very nice rebound from the green marked price level. The scenario where this can climb the yellow ellipse still holds ground.

Comment:

Time stamp of the second blue dot when the climbing above the yellow ellipse scenario is confirmed. It was a very good week for the bulls. Next one might not continue this bull run in the same fashion. Maybe the candle for tomorrow can give us more clues about how this can continue.

Comment:

Bullish candle on the monthly with a shadow for the low, bearish harami on the weekly but in a peculiar position relative to the previous highly bullish candle. On the daily it looks like it can travel to revisit 0.8627, the red marked price level, but further analysis of price action and candlesticks will be required for further assessment of any potential opportunities. One scenario is a pivot point and entry signal for a long after a correction.

Comment:

Candlestick shadows pointing up, and down, signaling pressure from both sides of the spectrum. A continuation of this pressure might push the price in a zig zag movement type of pattern, similar to a consolidation or a correction wave. (/highlighted with green path scenario). After such a scenario, momentum can build up in an attempt to build another impulse wave.

Comment:

After the surprising bigger drop, an interesting harami at the marked price level. The position is a bit uncomfortable because of the previous big red candle but still qualifies as a potential inflection point

Comment:

The red level failed as a support. Visible support created above the green line with a formation of candles that slowed the bears. Not sure if this is a turning point, but without a bearish candle in the next days to scare the bulls away or for the reconfiguration of probabilities, I am waiting to see if this setup holds. 2 days from the marked date (these keep shifting sometimes because of the weekend days that were not accounted for at the moment of drawing) and the red level lurking above. Not confident in the red rectangle to be hit scenario anymore.

Comment:

Small pivot point at the marked time stamp.

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Inflection point right above the marked price level and a bullish run at the time stamp of the red. Much below the projections, let's see if this reaches the red rectangle, it might not.

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I am not convinced that this could be a double bottom, but we have the secound rebound from the white marked price level. Still hoping to see the purple dot being hit to end the project with a bang, but I won't hold my breath for it...

Comment:

The marked price levels were much more accurate than the dots projections, as we have another rebound from the green. It looks weak overall but unfortunately I am still long biased and even though the purple one might be out of the question, a scraping around the end edge of the red or a bounce from it would be quite nice to end the project with one more price action coincidence.

Comment:

The marked levels turned out to be more relevant than the dots. Interesting situation here where this could be a higher high and a turnaround moment.