EURGBP - Two Values to Watch - Three Reasons to Sell

Hi Traders!
The market is in a Downtrend.

As you can see the market is moving between two important Areas:

• Longterm Trendline
  This Trendline you can see easily if you scroll left or go to the H4-Timeframe.
  It occured because the Downmovement started from the Top at 0.88500.
  
  
• Shortterm Trendline
  This Trendline arised since it touched the Support at 0.86700.
  The price still respects it.
  

NOW the market is between these two Areas.
It have to decide weather to go up or down.

But one direction has more chances:
The Downside!

Because of this tree factors:

• Longterm Trend
  As mentioned before, the market is moving in a Downtrend.
  That's why many Traders are looking for Sell-Opportunities.
  
  
• EMA Crossover
  In the chart there are two EMAs: the 20MA and the 50MA.
  Now here are also two things to consider:
  - The first thing is that the market is moving under both of these MAs.
  - The second thing is that the MAs didn't crossed over until now (since 7th of May).
  
  
• Strong Resistance
  If you use the Measure-Tool, you can see that the Resistance is closer than the Support.
  So, if the Breakout occurs to the Upside, the Sellers could just sell at the Resistance.
  

But if the Breakout occurs to the Downside, the next Support is far away and the RTR-ratio is much better.

We recommend to trade the Breakout with Momentum.


Thanks and successful Trading :)!

Comment:

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