Hello, traders. Let's examine the EURGBP chart, where the price is currently completing a pullback to the broken short-term bearish trendline after a change in market structure towards the upside. This provides us with an opportunity to position ourselves in alignment with the higher time frame.
When you review the Daily timeframe, you'll notice a bullish impulsive move that has occurred. Since reaching the recent high, we've been experiencing a bearish corrective move until yesterday. The price reached a critical support area and formed a bullish engulfing candle, which closed above the high of the previous doji candle. This suggests that the bearish momentum may be coming to an end.
Following the formation of the daily bullish engulfing candle, on the 4-hour timeframe, we observed a downward move. The price retraced to approximately 50% of the previous day's candle and approached the 200 EMA. These factors provide significant confluence for considering a buy position from this area.
Furthermore, the price is currently testing the daily pivot area. Since the price opened above the pivot and is now testing it from above, this indicates that the price may continue its bullish momentum.
Trade active
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Hello friends, I hope you all had a great start to the week. Last week, we placed a long order in EURGBP as there was an upside breakout of a short-term bearish trendline. The price reached our first target area, and we recommended closing a portion of the position to secure profits and keeping the remaining position risk-free to potentially gain more profit.
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Comment
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The price is approaching our second profit target zone. Please consider leaving a like and comment if you are finding this analysis helpful.
Trade closed: target reached
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The second take-profit area has also been reached by the price, and this position is now fully closed. If you have found this analysis helpful, please take a moment to leave a like and a comment.
Trade closed: target reached
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target reached! If you found this analysis helpful, please take a moment to leave a like and a comment or share your idea with me.