EURGBP Approaching Resistance, Prepare For A Reversal.
Sell below 0.8851. Stop loss at 0.8903. Take profit at 0.8731.
Reason for the trading strategy (technically):
EURGBP is approaching its resistance at 0.8851 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance) where we expect price to react off it, causing it to fall to its support at 0.8731 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap support). We do have to be cautious of the intermediate support at 0.8787 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) is approaching resistance at 97% where a corresponding reversal is expected. We have also identified a bearish divergence with price which contributes to our bearish bias.
Reason for the trading strategy (technically):
EURGBP is approaching its resistance at 0.8851 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance) where we expect price to react off it, causing it to fall to its support at 0.8731 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap support). We do have to be cautious of the intermediate support at 0.8787 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) is approaching resistance at 97% where a corresponding reversal is expected. We have also identified a bearish divergence with price which contributes to our bearish bias.