Summary:
Our analysis on the
EURGBP
pair suggests a potential long entry based on technical patterns and key Fibonacci levels. The aim is to capitalize on a bullish reversal targeting the supply zone overhead.
Technical Analysis:
The 4-hour chart indicates a recent bearish push into a zone of demand, marked by an FVG around the price level of 0.84995. This area represents a potential imbalance between buyers and sellers, possibly leading to a price reversal.
Fibonacci retracement levels have been drawn from a recent swing high to swing low, highlighting possible retracement targets at the 0.75 level (0.85252) and the 0.89 level (0.85107), which can serve as scale-in points for long positions.
The price action is currently showing signs of rejection from these lows, providing a more compelling case for an upcoming bullish move.
Trade Setup:
Entry points for long positions can be considered around the current price zone, particularly at the 0.75 Fibonacci level, with an additional entry at the 0.89 level to average down if necessary.
A stop loss could be placed below the recent lows and the 1 Fibonacci level at 0.84949 to mitigate risk.
The primary profit target for this trade idea would be the -OB level at 0.86025, a region that aligns with the supply zone where sell-side liquidity might be resting.
Risk Management:
Proper position sizing is crucial to ensure that the stop loss does not exceed the predetermined risk threshold of the trading capital.
It’s important to monitor the price action closely, as a break below the stop loss level could invalidate the bullish scenario.
Market Context:
This bullish trade setup is based on the assumption of a rebound from key technical levels. It is, however, contingent upon continued buying interest at these levels and the overall market sentiment remaining conducive to such a reversal.
Conclusion:
This trade idea outlines a long position on EUR/GBP, leveraging technical confluence at Fibonacci retracement levels and demand zones. It offers a structured approach with clear entry, stop loss, and take profit levels, but must be managed actively to align with any shifts in market dynamics. This is not financial advice; rather, it is a suggestion based on current technical observations for EUR/GBP.
Our analysis on the
EURGBP
pair suggests a potential long entry based on technical patterns and key Fibonacci levels. The aim is to capitalize on a bullish reversal targeting the supply zone overhead. Technical Analysis:
The 4-hour chart indicates a recent bearish push into a zone of demand, marked by an FVG around the price level of 0.84995. This area represents a potential imbalance between buyers and sellers, possibly leading to a price reversal.
Fibonacci retracement levels have been drawn from a recent swing high to swing low, highlighting possible retracement targets at the 0.75 level (0.85252) and the 0.89 level (0.85107), which can serve as scale-in points for long positions.
The price action is currently showing signs of rejection from these lows, providing a more compelling case for an upcoming bullish move.
Trade Setup:
Entry points for long positions can be considered around the current price zone, particularly at the 0.75 Fibonacci level, with an additional entry at the 0.89 level to average down if necessary.
A stop loss could be placed below the recent lows and the 1 Fibonacci level at 0.84949 to mitigate risk.
The primary profit target for this trade idea would be the -OB level at 0.86025, a region that aligns with the supply zone where sell-side liquidity might be resting.
Risk Management:
Proper position sizing is crucial to ensure that the stop loss does not exceed the predetermined risk threshold of the trading capital.
It’s important to monitor the price action closely, as a break below the stop loss level could invalidate the bullish scenario.
Market Context:
This bullish trade setup is based on the assumption of a rebound from key technical levels. It is, however, contingent upon continued buying interest at these levels and the overall market sentiment remaining conducive to such a reversal.
Conclusion:
This trade idea outlines a long position on EUR/GBP, leveraging technical confluence at Fibonacci retracement levels and demand zones. It offers a structured approach with clear entry, stop loss, and take profit levels, but must be managed actively to align with any shifts in market dynamics. This is not financial advice; rather, it is a suggestion based on current technical observations for EUR/GBP.