The bearish engulfing should be a small body sorrounded by a big decision candle's body.
As you can see here is not exactly the case because the small body isn't quite small but as always the prevalent thing when using candles is the criteria aported by the context. And due it think this is a good chance for a reversal and therefore a good chance to sell the EURGBP
The context making sense a reversal appear right now are:
76.8% retracement of an leading diagonal (expanded) just few pips above the actual high of the engulfing pattern.
Some what clear corrective pattern formed to pursue this pullback.
A very good risk reward to make this sell: if we observe the stop close only (close only if the price closes above the high of the reversal pattern) the risk reward looks good even if we point only to the actual support zone. (but given the fact that we assume this is a wave 3, or at least wave c which could lead us to a lower lows than the end of the previous down leading diagonal, the chances for a bigger downside move are pretty good.)
As you can see here is not exactly the case because the small body isn't quite small but as always the prevalent thing when using candles is the criteria aported by the context. And due it think this is a good chance for a reversal and therefore a good chance to sell the EURGBP
The context making sense a reversal appear right now are:
76.8% retracement of an leading diagonal (expanded) just few pips above the actual high of the engulfing pattern.
Some what clear corrective pattern formed to pursue this pullback.
A very good risk reward to make this sell: if we observe the stop close only (close only if the price closes above the high of the reversal pattern) the risk reward looks good even if we point only to the actual support zone. (but given the fact that we assume this is a wave 3, or at least wave c which could lead us to a lower lows than the end of the previous down leading diagonal, the chances for a bigger downside move are pretty good.)