Welcome to this analysis on Euro against British Pound.
It looks like Euro is one of the weakest pairs of the FOREX market this week.
As you can see on the 12 hr chart, Euro has been in a down trend against GBP since 18th of March.
Back in March it formed a descending triangle top which got confirmed by a break below 0.908 at 26th of March and it down trended to 0.868.
From mid April to 12th of May it traded in a trading range between 0.87 ish and 0.88 ish.
The range broke to the upside at 12th of May and price rallied from 0.887 to 0.905 which has been the previous resistant zone from the topping formation back at March.
Currently, it looks like price has formed a lower high and it is working on completing a Head And Shoulders reversal.
A high time frame break and close below 0.888 confirms the Head And Shoulders with a target of around 0.87.
There is a major support between the price and the target of the H&S at 0.883 which used to be the top resistant of the April range, the level can act as support now. IF the level breaks price can reach the H&S target without much problem.
If the H&S confirms I enter a short and manage my risk above the break out point and target 0.87 ish.
This trade has 3 risk to reward ratio.
Good luck trading :)
It looks like Euro is one of the weakest pairs of the FOREX market this week.
As you can see on the 12 hr chart, Euro has been in a down trend against GBP since 18th of March.
Back in March it formed a descending triangle top which got confirmed by a break below 0.908 at 26th of March and it down trended to 0.868.
From mid April to 12th of May it traded in a trading range between 0.87 ish and 0.88 ish.
The range broke to the upside at 12th of May and price rallied from 0.887 to 0.905 which has been the previous resistant zone from the topping formation back at March.
Currently, it looks like price has formed a lower high and it is working on completing a Head And Shoulders reversal.
A high time frame break and close below 0.888 confirms the Head And Shoulders with a target of around 0.87.
There is a major support between the price and the target of the H&S at 0.883 which used to be the top resistant of the April range, the level can act as support now. IF the level breaks price can reach the H&S target without much problem.
If the H&S confirms I enter a short and manage my risk above the break out point and target 0.87 ish.
This trade has 3 risk to reward ratio.
Good luck trading :)
Comment:
this trade is not active yet, we didn't have a high time frame close below the neckline yet.
Order cancelled