As we can see EURGBP has reached a strong area of resistance where both a weekly level and a long term trend line have confluence. We can see a daily rejection, RSI divergence on D and MACD confirms that the trend is losing strength.
All this combined to the fact that the pair has rallied since May gives us confidence that it could drop at least to the 0.8850 level. If that level is broken the pair could keep dropping until the lower band of the trend line at around 0.83 level.
Trade safe!!
All this combined to the fact that the pair has rallied since May gives us confidence that it could drop at least to the 0.8850 level. If that level is broken the pair could keep dropping until the lower band of the trend line at around 0.83 level.
Trade safe!!
Comment:
Comment:
Very choppy action. Price contraction usually happens before a big move
Trade closed: stop reached:
Ooooopppssss. Break out. Stop reached. #fail
We see on the weekly chart that the pair has the potential to drop all the wy to the lower band of the channel. Look at that uptrend without any resistance! If the pair drops it will probably have no support until the 0.85 level.
MACD is reversing what also confirms this view.
Tarde safe!