_VincentP_
Short

Consolidation before the fall

FX:EURGBP   Euro Fx/British Pound
7 months ago
I believe we are looking at the (temporary) end of the EUR bull run against the pound.

  • Consolidation since 6th of April
  • Break of steep lower trend line of bull run
  • Bearish divergence in RSI and Stoch
  • Multiple long wicks at this level indicating bulls didn't have enough strength to really break higher.
  • On the daily RSI and stoch are overbought which, especially on the Daily chart is a good signal we may have reached the end
  • Stoch and RSI were oversold in H4 and are now pointing lower

Initial entry would be after the break of the trend line that was strong in the past around 0.8040.
We could see consolidation here first like in the past before a convincing move lower towards a first TP at 0.7950 - 0.7920.

If this is reached and we break below it we could see TP2 at around 0.7850 - 0.7830.

This also matches possible reversal on GBPUSD             with more strength for the pound.
7 months ago
Trade active: Trade active since Monday morning and stop now set at B/E. First target almost reached.
7 months ago
Trade closed manually: Pound seems to be facing a lot of head wind, already closed this one at 0.7970. Might look to enter a new short if (other bears) remain convincing.
7 months ago
Comment: For those that kept it open, congratz on the first profit target!

Related Ideas

AmirHossein.J
7 months ago
hi
why you are not use this at m1,m5,m15 ?
Reply
AmirHossein.J
7 months ago
i think if you drop down indicator it will be much better , with more progress
Reply
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