The EURGBP is currently in a state of sideways movement which is called consolidation. Consolidation leads to expansion, so as i analyze this price chart they question that I want to ask myself is
IF Price action breakouts out to the ___ side
THEN where is it likely to continue to.
Doing so will allow me to see if there is enough potential profit (with limited risk of course) to create a trading opportunity.
This pattern formation is called a bearish flag and it traditionally breaks out to the downside. However, because the consolidation occurs at a previous level of structure, I's fair game either way in my opinion.
Akil
"Today is the start of our busy news cycle. Be safe out there traders!"
IF Price action breakouts out to the ___ side
THEN where is it likely to continue to.
Doing so will allow me to see if there is enough potential profit (with limited risk of course) to create a trading opportunity.
This pattern formation is called a bearish flag and it traditionally breaks out to the downside. However, because the consolidation occurs at a previous level of structure, I's fair game either way in my opinion.
Akil
"Today is the start of our busy news cycle. Be safe out there traders!"
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