EURGBP reached a strong key level last week. After some local consolidation and indecision, the price broke a falling parallel channel to the upside. It is a very strong bullish clue.
Now I set my buy limit order on 0.852 level. I will expect a growth to 0.857 / 0.865 Stop - 0.849 Risk - 1%
❤️Please, support this idea with a like and comment!❤️
The analysis is fine on the time-frame you've highlighted, but the pair is in a longer term downtrend fueled by possible continued strength in the GBP. Taking fundamentals into account, which i believe is tantamount in successful trading, then the BoE announcement tomorrow might offer some insight. Whilst not expected to be anything groundbreaking, one could easily see the downtrend continuing. There's also a little option volume concentrated around the 0.8500 level which could prove as an attractor for the end of the week....but if this level breaks...this'll continue being bullish for GBP (bearish on chart ofc). So correct to have the stop set around this level but i'd personally flip the trade to a short then...let's see what happens tomorrow! :-)