#EURGBP has been trading in a box in the last week.
Macro indicators from all sides show the weakness of the GBP, so we expect a breakout LONG with some levels of TP for the short/medium term:
around the 88, around the 89 and then further up to 89.5 and over to be confirmed by technical indicators.
A bit of reassessment was expected to happen at the market...
on EURGBP we are testing a daily structure level that could turn out to be the right shoulder of a bigger head&shoulder (on the daily). So we know we want to look for shorting opportunities. In the 4HR chart we can see price's created a double top with a nice RSI divergence.
The confirmation sell signal comes from the engulfing candle just formed.
GBP over extended to the downside, hence why my last two trades have been Buy GBP at S/R.
EURGBP gave me the entry for a short and I have gone with Euro weakness rather than CHF over extension or any of the other crosses. Going to limit the two trades with a GBP and not add anymore GBP exposure.
Risk : Reward = 1:3
1. Trend reversal and bullish move to daily resistance trend-line
2. Either a Bullish move upwards or short term bullish correction followed by continued bearish movement.
3.Check 1hr Chart for entry. message me if you would like 1hr chart analysis
EURGBP showing short potential with a head and shoulder pattern formed and neckline broken. we have currently retraced back into the shoulder and are rejecting 50 MA multiple times. initial targets at 0.8400 which is a nice RR also. just waiting euro major news before entering
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...
4.Pullback into the 618 fib; (the 2618 trade setup completed)
5.A rally above the 141 ext;
First target for the 2618 at 127% extension or an ab=cd pattern projection;
Second target above, at 161%, and there, we have confluence between fibs, retracement, and extensions, and the price is already...
Monitoring the EURGBP pair we have identified an RSI divergence on the Hourly chart.
We anticipate to see a retest of the 0.84260's level after the false break out (see market conditions) followed by a break-out of the rising wedge formation with even bigger profits.
Profits and stop losses are set according to previous structure supports with the latter being...
EURGBP is currently range bound. i am Awaiting a break out either side of range on the 2 hour to initiate either buy or sell trade.
Downside targets would be a test of lower trend line around 0.826-0.82500 area
Upside targets at 0.85000
as usual i've outlined daily structure levels with a black line. Right there, in a lower timeframe, we have a potential cypher pattern completing right now. I would be very interested in this setup because you should also shoot for extended move.
Stops below X, target as usual in pattern formation.
If you want, comment below.
Otherwise, see you in the...
Okay so I'm still waiting for target to be hit from the cypher that completed last early Monday morning.
DOUBLE TOP! Just spotted a potential double bottom at the cypher completion support line. I'll be looking for a 0.618 retrace from the second bottom uptrend before entering. Targets will be set at 1.272 extension of the first bottom and return (a to b).