themarketzone
Short

Three important zones to monitor over the next few weeks

FX_IDC:EURGBP   EURO / POUND STERLING
With $EURUSD's price hanging inside a very interesting harmonic sell zone (see linked idea) and $GBPUSD with bullish momentum that hasn't reached my target level (see linked idea), I tried to see if there's some reversal levels I could use to trade $EURGBP.
I've found three different levels that could create some short term reversal in $EURGBP that I plan to watch and monitor over the next couple of weeks:

1. AB=CD pattern near 0.725 - This pattern actually already completed and in case that $EURGBP will continue slightly higher it will violate this pattern. If $EURGBP will open below 0.725, this pattern might work.

2. My favorite option is the bearish Butterfly that completes near 0.73 - The figure level, the fib confluence and the harmonic pattern provide good reasons to seek for price reversal near 0.73.

3. The last zone is 0.735 that comes with major structure and the 200 daily SMA line. This zone can be used for stop losses for those who seek to trade the bearish Butterfly . 50-100 pips stop loss above 0.73 could be sufficient if indeed we will see some bearish sentiment crawling back to EURUSD             .

RSI isn't overbought yet, but its getting there.

If we will take the max risk here - 100 pips and max profit for this setup (targets near 0.71), we get about 1:2 Risk/Rewards.

Hope that you'll like this analysis and if you do, subscribe to my newsletters - http://goo.gl/c13urY

thank so much..
+1 Reply
Still looking good following that False break to the 200 SMA line. I'm up about 60 pips right now
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