Good day Traders !! On this multi-timeframe analysis we will make a full breakdown of this pair.
Monthly : We have just Completed an "M" formation We expect the price to continue dropping until the Demand zone and then start it's correction move .
Weekly : We also have an "M" formation as well and the neckline is exactly in confluence with the 0.5 Fib level taken on the previous impulse leg.
Daily : We are currently in an accumulation phase and we might see the price dropping a little bit more in order to grab the necessary liquidity for the correction move and then complete the "M" and "W" pattern .
COT : Institution have been Increasing net positions in EUR since they added more than 4000 long positions and closed to 800 Short position during the last report.
From an GBP perspective we are still looking at a strong GBP because hedge funds added more longs positions than shorts and this explains the fact that there will be a lot of sell limits on this pair and then support our idea of correction in the market.
8H: We have a descending channel , we failed to break through this channel during the previous week and we need a strong impulse to do so which mean we need to be at a strong level of demand to be able to make a massive impulse to the upside.
Short term Trade : We will be entering at the next touch of the trendline for the continuation toward the demand zone.
Long term : If the price succeed to drop at the demand zone we will be monitoring the price for a change of environment in order to enter a long position and capitalize in the retracement.
Now if you enjoyed this analysis smash that like button and share. If you have a different opinion please leave a comment below as I would love to get more insights and ideas. I also linked my previous idea about this asset.
Trade safe !!!
Monthly : We have just Completed an "M" formation We expect the price to continue dropping until the Demand zone and then start it's correction move .
Weekly : We also have an "M" formation as well and the neckline is exactly in confluence with the 0.5 Fib level taken on the previous impulse leg.
Daily : We are currently in an accumulation phase and we might see the price dropping a little bit more in order to grab the necessary liquidity for the correction move and then complete the "M" and "W" pattern .
COT : Institution have been Increasing net positions in EUR since they added more than 4000 long positions and closed to 800 Short position during the last report.
From an GBP perspective we are still looking at a strong GBP because hedge funds added more longs positions than shorts and this explains the fact that there will be a lot of sell limits on this pair and then support our idea of correction in the market.
8H: We have a descending channel , we failed to break through this channel during the previous week and we need a strong impulse to do so which mean we need to be at a strong level of demand to be able to make a massive impulse to the upside.
Short term Trade : We will be entering at the next touch of the trendline for the continuation toward the demand zone.
Long term : If the price succeed to drop at the demand zone we will be monitoring the price for a change of environment in order to enter a long position and capitalize in the retracement.
Now if you enjoyed this analysis smash that like button and share. If you have a different opinion please leave a comment below as I would love to get more insights and ideas. I also linked my previous idea about this asset.
Trade safe !!!