Part 2 of EURGBP Analysis: Potential Buying Areas
Lets continue from my previous post on EURGBP, we are looking for areas where price can retrace down to. Areas where we should be looking to buy.
Let us use the EURGBP 1H Chart. First of all, for a strong move creating imbalance like this. We want to buy at discount, no matter how tempting the market looks like. We have Two Areas where we can buy.
The First Buying Area that looks good for entry is the surface of the Main OB at 0.8360. I have strong belief that price will want to retest that area.
Since we had multiple break of structure (mBOS), for a strong move like this, Price will test the first Break of Structure which is also 0.8360.
Interesting enough, this area is also 61.8% Fibonacci Support of the Uptrend. Amazing Confluence!!
Second Buying Area that looks good for entry is the RTO Block at 0.8306 - 0.8326 which falls between the 78.6% Fibonacci Support and 88.6% (Deep Fibonacci Levels).
This Area is also the Tail of the H4 Candle that started the Big Move Last Week Thursday.
The 88.6% at 0.8306 is also at a QML Level. Two Equal Lows (EQL) at that level from January to form the Left Shoulder, the Stop Hunt (SH) that went down to 0.8284 as the QM Head. So if price comes back to that level, it can form the Right Shoulder.
I strongly believe that since this is a Strong Uptrend, Price should not fall below the 88.6% Fibonacci Support. If Candles start closing under the 88.6% Fibonacci Support, It means that the trend has turned bearish. and then the trade idea will become invalid.
Cheers and Happy Trading!!
Let us use the EURGBP 1H Chart. First of all, for a strong move creating imbalance like this. We want to buy at discount, no matter how tempting the market looks like. We have Two Areas where we can buy.
The First Buying Area that looks good for entry is the surface of the Main OB at 0.8360. I have strong belief that price will want to retest that area.
Since we had multiple break of structure (mBOS), for a strong move like this, Price will test the first Break of Structure which is also 0.8360.
Interesting enough, this area is also 61.8% Fibonacci Support of the Uptrend. Amazing Confluence!!
Second Buying Area that looks good for entry is the RTO Block at 0.8306 - 0.8326 which falls between the 78.6% Fibonacci Support and 88.6% (Deep Fibonacci Levels).
This Area is also the Tail of the H4 Candle that started the Big Move Last Week Thursday.
The 88.6% at 0.8306 is also at a QML Level. Two Equal Lows (EQL) at that level from January to form the Left Shoulder, the Stop Hunt (SH) that went down to 0.8284 as the QM Head. So if price comes back to that level, it can form the Right Shoulder.
I strongly believe that since this is a Strong Uptrend, Price should not fall below the 88.6% Fibonacci Support. If Candles start closing under the 88.6% Fibonacci Support, It means that the trend has turned bearish. and then the trade idea will become invalid.
Cheers and Happy Trading!!
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