EURGBP, Building Huge Flag-Formation, Steps To Confirming!

Hello Traders Investors And Community, welcome to this analysis where we are looking at EURGBP 4-hour timeframe perspective, the recent events, the current formational structure, the huge decisive formation building up and what to expect the next times. EURGBP confirmed its local highs at the 0.917 level before pulling back and entering into this overall range in which it is currently trading and moving in an overall sideways market, such markets ending sooner or later with a decisive shift and alteration in price resulting in greatly volatile movements either to the up or downside. In this case, I detected the importance in the current structure which will determine the further outcomes and destiny of EURGBP, therefore it is important to wage what the market can do and what it is likely not to do in order to don't get overly speculative and look for the proper confirmations in the structure.

Looking at my chart you can watch there that EURGBP is just building up this huge and massive descending wedge formation where the upper and lower boundary marked in blue which the price already touched several times, normally such formations indicating an alteration and reversal in price breaking with a volatile move to the up or downside. Furthermore, you can watch the wave-count EURGBP has formed in this wedge so far completing A-C and now setting up to form the wave D where the wave E will likely follow up in the structure. When this forms as expected the overall wave count will be confirmed and the formation can possibly move properly and confirm, this will happen when the price approaches above the upper boundary with a volatile move to confirm it with a pullback before moving on to further continuations.

Next times will show how the wave-count will come to an end and the EMA supports initiating the confirmation, in this case it is highly important to hold the EMAs and don't fall below them again because this can invalidate the formation, nevertheless, the confirmational scenario is currently the most likely one. This mechanism can be traded either aggressively with an immediate entry in the range or conservative with entry after confirmation of the massive wedge, although the immediate entry is also possible here the conservative one will be much smarter as it is providing a better risk comparison. Traders have to decide individually which entry to prefer, targets can be measured around the 0.907 level, when the pair approaches here it has to be elevated how it continues and if there is a pullback expected or further continuation ahead.

In this manner, thank you for watching, support for more market insight, all the best!
"The ambition to transform opportunity into gold remains the most important tool for a trader."

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: EURGBP continued with the completion of the whole wave-count with the final wave E moving into the lower bounce boundaries of the descending wedge.

EURGBP after completing the wave-count within the lower boundary emerged with a massive bounce to complete the whole descending wedge with a determined breakout reaching the final target zones.