A possible short set-up on EURGBP.
0.9050 is a significant ceiling of resistance for the pair and the November 2016 monthly candle close gave an indication of this.
Price has since floated between 0.87 and 0.84 with indecisive monthly closes but the latest close in January shows a significant upper wick rejection of resistance at 0.87 suggesting that the bears closed the month with the upper hand
The current weekly candle is shaping as a gravestone doji which demonstrates strong bearish sentiment (although this candle is not valid until the weekly close)
After the recent bullish 'gap' of price the pair has had a descending impulse back below the resistance zone of 0.87
As seen on the daily, we now have a break retest and continuation from this zone 'floor' which is suggesting the next move for price is down.
This zone 'floor' is also confluent with a daily 38% Fibonacci retracement level.
Again, there is significant GBP news tomorrow so additional volatility is expected so trade accordingly.
0.9050 is a significant ceiling of resistance for the pair and the November 2016 monthly candle close gave an indication of this.
Price has since floated between 0.87 and 0.84 with indecisive monthly closes but the latest close in January shows a significant upper wick rejection of resistance at 0.87 suggesting that the bears closed the month with the upper hand
The current weekly candle is shaping as a gravestone doji which demonstrates strong bearish sentiment (although this candle is not valid until the weekly close)
After the recent bullish 'gap' of price the pair has had a descending impulse back below the resistance zone of 0.87
As seen on the daily, we now have a break retest and continuation from this zone 'floor' which is suggesting the next move for price is down.
This zone 'floor' is also confluent with a daily 38% Fibonacci retracement level.
Again, there is significant GBP news tomorrow so additional volatility is expected so trade accordingly.