EURGBP Potential reversal
EURGBP could be facing a potential reversal, looking at all the signs. I have explained the crucial areas on the chart, but I will go over it in more detail.
On chart:
As we can see, the pair is closing in resistance at 0.8, which is working as a strong resistance, but due to it being a physiological level, but also because it has held multiple times throughout the charts timeperiod. However if the resistance is broken, then we have the TL from 2011 and Fibonacci 61.8 as the next two levels the price need to challenge. After that we have the TL from 2008, which is fairly strong.
The price is moving towards Fibonacci 61.8, which is a strong fibonacci level. Even though the price has broken fibonacci 50, it struggled a lot at this level.
The candle formed is an hanging man, which could be signaling a reversal.
Indicators:
RSI is close to where it was in January 2013, where the reversal from a new uptrend happened, continuing the longer term trend. RSI is also overbought, as well as struggling along the RSI resistance zone, where the price has reversed multiple times throughout the timeframe for this chart (1994-2016)
MACD is at the same level it was in March 2013, when it confirmed the continuation of the downtrend.
EMA 200 the price is struggling at this level, however if EMA 200 should be considered a strong resistance/support on this pair is up for question, as the pair tend to ignore the indicator.
Volume has been reduced significantly.
Position:
Entry 1, 0.7930
Entry 2, 0.7990
SL 0.82, above TL 2011
TP 0.7
Tips: Trail the stop loss, split up your planned position to reduce your risk. Increase as the pair moves in your direction.
On chart:
As we can see, the pair is closing in resistance at 0.8, which is working as a strong resistance, but due to it being a physiological level, but also because it has held multiple times throughout the charts timeperiod. However if the resistance is broken, then we have the TL from 2011 and Fibonacci 61.8 as the next two levels the price need to challenge. After that we have the TL from 2008, which is fairly strong.
The price is moving towards Fibonacci 61.8, which is a strong fibonacci level. Even though the price has broken fibonacci 50, it struggled a lot at this level.
The candle formed is an hanging man, which could be signaling a reversal.
Indicators:
RSI is close to where it was in January 2013, where the reversal from a new uptrend happened, continuing the longer term trend. RSI is also overbought, as well as struggling along the RSI resistance zone, where the price has reversed multiple times throughout the timeframe for this chart (1994-2016)
MACD is at the same level it was in March 2013, when it confirmed the continuation of the downtrend.
EMA 200 the price is struggling at this level, however if EMA 200 should be considered a strong resistance/support on this pair is up for question, as the pair tend to ignore the indicator.
Volume has been reduced significantly.
Position:
Entry 1, 0.7930
Entry 2, 0.7990
SL 0.82, above TL 2011
TP 0.7
Tips: Trail the stop loss, split up your planned position to reduce your risk. Increase as the pair moves in your direction.
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