EURGBP - Daily Timeframe Overview and Short Opportunity
We have not much considered
EURGBP
for a while now, as the pair has been in a truly obnoxious sideways consolidation for a long, long time. Once we understood that the consolidation would have gone on for a while, we closed all our short trades from the 0.928 area and let it be. Now there are signs that the consolidation is starting to die out, and that the pair could be making more interesting movements soon.
More specifically, after a first impulse to the downside, the moment the pair has made a running flat type correction which seems to be over. For this reason, from this moment on we will be looking for sell setups, on this pair: watch out for ending diagonal formations and other price action patterns for an entry point on their break. For a more conservative approach, wait for a first small impulse to the downside, wait for a small correction of said impulse on the 60min timeframe, and sell the break of said correction with a stop loss above it.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
EURGBP
for a while now, as the pair has been in a truly obnoxious sideways consolidation for a long, long time. Once we understood that the consolidation would have gone on for a while, we closed all our short trades from the 0.928 area and let it be. Now there are signs that the consolidation is starting to die out, and that the pair could be making more interesting movements soon. More specifically, after a first impulse to the downside, the moment the pair has made a running flat type correction which seems to be over. For this reason, from this moment on we will be looking for sell setups, on this pair: watch out for ending diagonal formations and other price action patterns for an entry point on their break. For a more conservative approach, wait for a first small impulse to the downside, wait for a small correction of said impulse on the 60min timeframe, and sell the break of said correction with a stop loss above it.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
Trade closed manually
Comment:
At the moment, considering the structure we are seeing, we believe that the EURGBP could go for one more up to retest the channel's previous high around the 0.898 area. Watch it's behavior in the green rectangle area: if it consolidates to break the 0.880 area, then it will most probably go for the aforementioned movement to the upside:
Comment:
Small contracting flat on the 15min timeframe: