EURGBP – Deep pullbacks but bearish overall - the week of 02 May
As the 200dma shows this pair is bearish in the long term. Deep pullbacks and small gains each time seem to be the trend here.
Scenario 1 - The 200dma could be touched again and provide resistance. If we see price stalling in this region, that could be a good entry location.
Scenario 2 - Right now, price is at another significant level at 0.8380 and arrived with a strong bearish daily candle. It can continue straight through it on Monday and in that case, I will not get a short entry. My preferred scenario is a break below and a retest of 0.8380 and then a retest. I would then take a short with stop above the high of Friday and target the area above 0.8250. This could be a potentially 2R trade.
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Scenario 1 - The 200dma could be touched again and provide resistance. If we see price stalling in this region, that could be a good entry location.
Scenario 2 - Right now, price is at another significant level at 0.8380 and arrived with a strong bearish daily candle. It can continue straight through it on Monday and in that case, I will not get a short entry. My preferred scenario is a break below and a retest of 0.8380 and then a retest. I would then take a short with stop above the high of Friday and target the area above 0.8250. This could be a potentially 2R trade.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
Trade closed: stop reached:
Unexpected reversal, stopped out.