Earlier this month, EurGbp broke a bearish trendline and appeared to be in an uptrend and the price was crawling up inside the rising channel. However, after price made a bullish rally yesterday to the top of the channel, there doesn't seem to be any follow through. Price is at the top of the channel and is also touching a major trendline. A pin bar has formed at this juncture and there could be a sell-off and a resumption of the old downtrend.
RSI is also showing some bearish divergence.
Stop loss above pin bar at 0.8040 Target will be at least to the bottom of channel - 0.7940 and could go to support of 0.7915
If price breaks the major bearish trendline and exceeds the high of the pinbar/shooting star, then this idea has failed and my bias will be bullish.
Comments
DerekUweri71
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I just posted an idea on GBPJPY, Thanks.
dopey99
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I feel the size of the pinbar is too small against the monster bullish bar from the previous day so I do not feel this pinbar will really work.
Just my opinion. Good luck trading!
DerekUweri71
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Samuel, Thanks for comments. The pin bar on mt4 is much bigger. I'm unable to copy paste it.
DerekUweri71
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If price does indeed drop, would this swing high that I plotted not make for a valid trend-line ?
DerekUweri71
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Thanks for comments. I agree. Isn't it possible to have more than one trendl ine?
Technician
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Hi Derek, my main concern is that the falling trend line is not plotted correctly. Thank you
Mazen_alhegili
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True we have a good confirmation of broken trend.
Mazen_alhegili
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