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.
Trade active
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Trade active since Monday morning and stop now set at B/E. First target almost reached.
Trade closed manually
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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.
Comment
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For those that kept it open, congratz on the first profit target!