EURGBP:Freefall Likely To Continue As Price Met Stern Resistance
This Pair has been in a spotlight for quite sometime because it has been in a gradual free fall over some previous years. Now the free fall seems likely to continue as the the crucial support level of 0.83000 has been violated on both monthly and weekly time frames!
Some few weeks ago, the 0.83000 level was finally violated and now the price seems likely to continue its downtrend towards the next potential resistance lying at 0.8000 psychological level. Last week however we saw an impulse move that was met with stern resistance at the 0.85000 psychological level as evident on the main chart. The price is currently being capped by descending parallel channel. In this scenario the 0.8500 psychological resistance level becomes a vital part as stop loss. The trade criteria has been met already and now would be the ideal good time to take this pair short. Below are the details:
TRADE TYPE: SHORT SWING TRADE
ENTRY: ABOVE 0.83000 (FOR RR TO REMAIN > 1)
STOP LOSS: 0.85500
TAKE PROFIT: 0.83000
NOTE: In unlikely circumstances, this trade would only be considered to HIT stop loss when the price hits 0.85500 level. After this its advisable to wait and see where does the monthly candle closes. Shall it close above 0.85000 then the trade has been nullified, on the other hand shall it close below 0.85000 then we can take this trade short again as the price failed to clear the 0.85000 psychological level!
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Some few weeks ago, the 0.83000 level was finally violated and now the price seems likely to continue its downtrend towards the next potential resistance lying at 0.8000 psychological level. Last week however we saw an impulse move that was met with stern resistance at the 0.85000 psychological level as evident on the main chart. The price is currently being capped by descending parallel channel. In this scenario the 0.8500 psychological resistance level becomes a vital part as stop loss. The trade criteria has been met already and now would be the ideal good time to take this pair short. Below are the details:
TRADE TYPE: SHORT SWING TRADE
ENTRY: ABOVE 0.83000 (FOR RR TO REMAIN > 1)
STOP LOSS: 0.85500
TAKE PROFIT: 0.83000
NOTE: In unlikely circumstances, this trade would only be considered to HIT stop loss when the price hits 0.85500 level. After this its advisable to wait and see where does the monthly candle closes. Shall it close above 0.85000 then the trade has been nullified, on the other hand shall it close below 0.85000 then we can take this trade short again as the price failed to clear the 0.85000 psychological level!
Trade Safely. I hope you find this insight helpful. Please LIKE & FOLLOW for more insights into Major & Minor Currency pairs.
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