Here we have EUR/GBP in a very important area of price. This trade can be played two ways. A close below 0.71610 to sell or a close above 0.72355 for a outlook for the rest of the week most likely.
You can see we have 4 indecisive candles on the and when you drop down to a 4hr chart you can see we have some big candles coming in to play, so this is just one of those trades that you are going to have to watch on a 4hr and .
This zone of price where candles of indecision have happened is a very important zone when price can actually close above or below it on a 4hr chart it will be a big movement to happen.
(A WICK BREAK WILL NOT SUFFICE) IT MUST CLOSE ABOVE OR BELOW!
If this trade ends up going long our stop will be 0.71610 and if we take it short our stop loss will be 0.72355
These are deep stops but if you have seen our true price action based risk management video on Youtube.com/PipsUniversity you will understand how to calculate your stop loss for this so that it is not intimidating to risk that many pips as a stop because, it should equal only 1-2% maximum anyways if it's hit so you should be okay.
The main trend is down on the Daily so this will be a counter trend style of trade if we take it long, but it will also suit one of our breakout tactics so it's worth it to keep it on the watch list!
It will be a pretty big move once one of these happen so we will most likely be holding it all week once it picks a direction!
Good luck and happy trading this week!