Price action in the hourly time frame is showing us that we have a highly probable Head and Shoulder Pattern forming. The way we execute in this Bearish Market, would be to wait for the breakout of support which is our Neckline. Waiting for Bearish Reversal Confirmation at the pullback of previous structure then executing ourselves into the market after the...
Possible correction at this price. We used Elliot Waves to determine the turn point. On the other hand this price of GBP is at 2 year lows which could also indicate down turn aswell as seasonal effect in September. We think that the correction should hit price 92.200 and at that price we will see if it breaks out.
*Yellow = 200 EMA | Blue = 100 EMA
This is my analysis of EUR/GBP, a pair which has a crossroads ahead of it, particularly this upcoming week. Currently, I see 3 different options:
A) Play into Consolidation
This is the most probable option especially because we're currently moving on a steep trendline and on bearish divergence. Current price action could...
I am looking at this bullish corrective structure on the daily time frame. Price is now at the top of wave 4 and needs to confirm either a breakout to the upside or a reversal for wave 5 first. I expect price to move around this level for a while before making a definitive move so will be trading both long and short positions on lower time frames.
For this setup I'm zooming in on the 1 hour time frame. While this pair remains on a bearish trend overall on the larger time frames, it looks like we will be getting a drawback. Keep in mind that since this setup is technically a drawback right now that it carries a little more risk than a standard trend trade setup, so I will only be risking 1.5% of my capital...
Getting ready for battle in advance!
So if we go up to my magical box, that's the 0.786 fib, the previous fibo's got respected so this one should, and also it's a resistance tested and rejected turned support for a few days, turned resistance again.
It's highly likely that, if we reach it, there will be a rejection.
If not, I'll look at next resistance area.
Last week price sold off from key resistance at 0.89486 pointing towards further declines next week. A pullback and re-test of the channel top will provide a great place to look for shorts down towards the targets of 0.88103 and 0.87765 respectively.