A successive cycle imitating the 3 drives pattern is in formation on the EUR/GBP 4 hour timeframe. Stochastic divergence, usually leading to a deeper pull back in a trend, has given the following confluence for the resumption of an in trend phase to the downside with price pulling back into:
An entry can be taken below the previous 4 hour bar, or once the current bar has formed as a bearish reversal bar, ideally an undersized or inside bar, giving additional confirmation to a sell setup.
- resistance at 0.7290;
- 50 and 20 ema;
- 0.618 Fibonacci level (very close to 0.7290); and
- trend line (third touch).
An entry can be taken below the previous 4 hour bar, or once the current bar has formed as a bearish reversal bar, ideally an undersized or inside bar, giving additional confirmation to a sell setup.