At the beginning of December it looked as if the reversal in this pair from mid October would accelerate as it dipped below the 200 on the H4 TF. Unfortunately for all BEARS the 200 held and has acted as support ever since. I still believe that this relief rally by the BULLS has limited scope and we shall soon see a move back south. I'm already in this trade but cautious traders might want to look at .8573/.8577 area.
As can be seen .8573 has seen price reverse (and support) for the last 2 months. This area now coincides with WR1 pivot at .8577.
With price looking stretched on some RSI time frames, a reversal in this area looks guaranteed.
Carefree traders could enter at market with a STOP above WR1 at .8590 for a 50 pip risk. Careful trades might want to see if we head higher where WR1 will act as a magnet.
Careful traders might miss the entry if price reverses from current levels (.8542).
If you miss the entry I'd wait until we drop below today's open at .8521.
As can be seen .8573 has seen price reverse (and support) for the last 2 months. This area now coincides with WR1 pivot at .8577.
With price looking stretched on some RSI time frames, a reversal in this area looks guaranteed.
Carefree traders could enter at market with a STOP above WR1 at .8590 for a 50 pip risk. Careful trades might want to see if we head higher where WR1 will act as a magnet.
Careful traders might miss the entry if price reverses from current levels (.8542).
If you miss the entry I'd wait until we drop below today's open at .8521.
Trade active:
SHORT EUR/GBP from .8577. Target open. STOP depends on price action.