Price is approaching its 1st resistance (100% Fibonacci extension , horizontal swing high resistance) where it is expected to reverse down to its support (horizontal overlap support,38.2% Fibonacci retracement ).
Stochastic (89, 5, 3) is approaching its resistance where a corresponding reversal is expected
Trading CFDs on margin carries high risk.
Bears are putting their last line of defence at the resistance level at 0.8845.
If the resistance level holds, a decline will occur in the short-term.
Meanwhile, the EUR/GBP currency pair is trading in a narrow ascending channel and expects a breakout.
Good luck guys!
Regardless which way you want to trade, look for minimum five 4hr. candles in consolidation zones (yellow border boxes), or five daily candles for solid yellow boxes. If you're a pattern trader or pinbar trader, this might be useful here.
Wait for a significant breakout of the 4hr. consolidation or daily consolidation from red border boxes to...
Right now is EURGBP in nice trend up...
However the market not give to us change take long trade on near volume cluster...
For that reason nice single confirmed with volume cluster is around 0.868 for long trade.
4H CHART EXPLANATION:
In 4H timeframe we observe that price has broke Resistance Zone 1 at 0.86750. The upside movement has potential to reach Resistance Zone 2 at 0.88275 in the short term, and if that zone is broken, then it could face Resistance Zone 3 at 0.9050 in the middle term.
Updates comming soon!
Our first idea runs exactly like we showed..
What I now see at the moment is that it try to break the support line,
and more important, the 50 Moving average on the 4H chart and the 200 Moving average on the 1H chart.
If those 3 things line up, then retest and it fail, we can get a nice short.
EURGBP Short-Term short Idea
waiting for a momentum break below 0.88770 to sell this one
1- Regular Bearish Divergence on MACD (in red)
2- Channel (in blue)
3- Rejection zone 0.900 (in green)
Three confluences are enough to consider shorting EURGBP, after a break below 0.88770 (in black)