EUR/GBP - SUPER HIGH REWARD & LOW RISK | DEMAND ZONE APPROACHING
- To my surprise, EUR/GBP support has broken down and price has fallen more than I expected
- In the mid-term and long-term timeframe, I still believe there is high demand for EUR/GBP at lower prices and that price will hold and reverse
- Given the recent DXY analysis, this further supports the case for all USD pairs selling off and GBP expected to sell off more than the EURO
- The stochastic is also ready to reverse given that it is printing oversold on the daily
- The EURO has more backing and support than the GBP due to covid and stimulus and therefore I believe the EURO will out-perform GBP in the mid-term and long-term
- Long entries to be taken soon at the strong support level with a super low risk level due to the strength of the support therefore the ability to place a tighter stop, and higher confirmation that higher prices naturally want to be traded in this market/chart
- Given the lack of trading volume below the support, this further supports the low-risk argument by having greater certainty in the position not being stopped out through a fake-out and the greater certainty in price not wanting to give way to such a large drop under said support
