Hi Traders! EURGBP bearish continuation expected at the moment and we can look for short term sells. A detailed analysis of this setup is as follows:
On the weekly chart the price moving inside a range, this range is formed by the highs and lows reaching parallel support and resistance zones. Currently the price is at the middle of this range and we may now expect the price to move lower until it reaches the bottom of this range. We may look for further confirmation on lower timeframes to confirm this bearish scenario before we start looking for sells.
On the daily chart price has created a pattern and is moving inside it. The price is currently near the middle of this pattern and we may expect the price to move lower until it reaches the bottom of this pattern (somewhere around 0.8650 or so). Hence we may now look for possible sells in the shorter term.
On the H4 chart the price broke below the bottom of the range. We were expecting a double wave correction but we got a flat correction instead and now the move down is continuing. Currently we have a double wave down and also a bullish divergence has formed (based on the histogram) so if that provides us with the pullbacks we may go ahead and start looking for the sells.
On the H1 chart we had two false breaks, one at the bottom and one at the top. The false break at the top didn’t come along with bearish divergence but the price has moved lower now. So basically all evidences indicates that this pair is currently bearish and every pullback we get now is an opportunity for us to go ahead and look for sells.
Note: If you find yourself a good setup using any of your strategy with this pair, then go ahead and sell it.
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