EURGBP is approaching our first support at 0.8724 (horizontal swing low support, 100% Fibonacci extension, 76.4% Fibonacci retracement) and a strong bounce might occur above this level pushing price up to our major resistance at 0.8855 (horizontal pullback resistance, 50%, 38.2% Fibonacci retracement, 100% Fibonacci extension).
Stochastic (89,5,3) is also...
EURGBP Sell Idea @ Weekly Supply Zone (0.91630 - 0.93064)
Sell Limit: 0.91581
Stop Loss: 0.93114
Take Profit: 0.89293
Risk Management = 0.01/$100
Close partially the contract once it reaches 50% of profit, Move stop loss over the entry level
Close partially the contract once it reaches 80% of the profit
We can see that the GBP has gained a lot of strength in the past couple of days, something also backed by positive economic date. From a technical standpoint right now we could be seeing one more wave to the downside should my wave count be correct. Looking at the bigger picture I believe we could be in a FLAT or EXPANDED ABC Correction. I'll post a screenshot...
1) Waiting for the pair to move a little higher till it retests the still fresh supply zone
2) Wait for a bearish signal and enter the short side
3) TP target of around 200 pips (set at confluence between past support pivot + 78.6 Fib level + fresh demand zone)
4) Bearish RSI Divergence which is why I think the pair will be moving downwards really soon