probably it could be insane to go against the pound strength (after the last week with an outstanding rally) but as usual i do my analysis without considering macroeconomics events are happening these days. And that's because we're traders, not analysts: here on the daily chart (left-hand side) you can see price has fallen and reached a key structure...
I think the short term downtrend on the EURGBP is a correction as the Euro should continue to get stronger. Looking for a bounce off of near-term support and a break of the downward sloping trend line for a long.
The EURGBP has just respected a very old and solid looking support level (label A). This level has been respected four or five times since July 2016. This level suggests buying positions. The upper descending trend line (label B) suggests resistance points. Using those levels as entry and exit points with a stop loss just below the lower extended support line...
today i want to bring an harmonic pattern to you. It's a Gartley pattern and its completion will be around 0,84890.
Remeber to put your stop loss below X, targets at the 382 and 618 retracement of AD leg.
If you have any question, feel free to comment below.
Bullish on higher highs and lows, strong support found at .382 fib level. Buying opportunities between the lower trend-line, and .382 fib level.
SL at .8150, given the likely volatility associated with the French election (23rd) and the continuing uncertainty surrounding Brexit.
TP at .9000
#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.
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...