EURGBP exhibits a valid bearish market structure in the 1-hour timeframe, as illustrated in the chart. This structure begins after the price tested an important daily resistance and was subsequently rejected.
With this ongoing bearish move, we are inclined to take sell positions in this pair as long as the current structure persists.
Upon closer examination, the price tested the bearish trendline and formed a 1-hour engulfing candlestick pattern. When combined with the preceding candles, it resulted in an evening star candlestick pattern.
The occurrence of this pattern within a resistance area enhances the likelihood of its significance.
The formation of this pattern leaves us with a clean-break area, which serves as an important supply zone where traders may consider selling this pair.
Additional bearish confluences include the price testing the 1-hour and 30-minute 200 EMA.
For selling this pair, the optimal area to place your stop-loss would be above the previous high. If the price reaches that point, it indicates the end of the bearish trend, and we would then be dealing with a bullish trend.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
With this ongoing bearish move, we are inclined to take sell positions in this pair as long as the current structure persists.
Upon closer examination, the price tested the bearish trendline and formed a 1-hour engulfing candlestick pattern. When combined with the preceding candles, it resulted in an evening star candlestick pattern.
The occurrence of this pattern within a resistance area enhances the likelihood of its significance.
The formation of this pattern leaves us with a clean-break area, which serves as an important supply zone where traders may consider selling this pair.
Additional bearish confluences include the price testing the 1-hour and 30-minute 200 EMA.
For selling this pair, the optimal area to place your stop-loss would be above the previous high. If the price reaches that point, it indicates the end of the bearish trend, and we would then be dealing with a bullish trend.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
