EURGBP: A Sell Setup to Target the Recurring Price Movement
-INTRODUCTION-
EURGBP has recently reached the resistance level of 0.8600. From that level, a big bearish engulfing candle was formed, sending the price 200 pips down two support levels. From the past price action, we can clearly see a recurring price movement. After a clear bearish engulfing pattern was formed on the daily chart, along with a high RSI, the price fell sharply down two support levels. Then retracements took place but eventually the price fell back to retest the previous support level one more time. Therefore, this recent bearish momentum indicates that the price could potentially retest the 0.8400 support level one more time after a retracement. Thus, we will look to enter sell positions after a retracement.
-TRADING PLAN-
EURGBP is a slow moving pair. Therefore, we need to have patience to find good entries. However, since this pair is not volatile, a good entry would have a higher probability of winning the trade. We are currently monitoring the price for a retracement. We hope the price could retrace back to 0.8550 ~ 0.8600 level so that we can have a great risk to reward ratio entry.
We will update with a new post when a potential entry is created.
Check out our recent trading ideas below :)
EURGBP has recently reached the resistance level of 0.8600. From that level, a big bearish engulfing candle was formed, sending the price 200 pips down two support levels. From the past price action, we can clearly see a recurring price movement. After a clear bearish engulfing pattern was formed on the daily chart, along with a high RSI, the price fell sharply down two support levels. Then retracements took place but eventually the price fell back to retest the previous support level one more time. Therefore, this recent bearish momentum indicates that the price could potentially retest the 0.8400 support level one more time after a retracement. Thus, we will look to enter sell positions after a retracement.
-TRADING PLAN-
EURGBP is a slow moving pair. Therefore, we need to have patience to find good entries. However, since this pair is not volatile, a good entry would have a higher probability of winning the trade. We are currently monitoring the price for a retracement. We hope the price could retrace back to 0.8550 ~ 0.8600 level so that we can have a great risk to reward ratio entry.
We will update with a new post when a potential entry is created.
Check out our recent trading ideas below :)
