UNDERSTANDING PRICE ACTION/STRUCTURE
EUR/GBP 4H
Price has been in an uptrend for for sometime on this pair, as the Pound has been quite weak. As you can see, it was respecting the ascending Trendline, sometimes to the PIP. The Red arrows are showing Price Action, unable to break 4H Resistance for a few attempts. Once broken, I want to see a re-test of that level which clearly happens. The manner in which it re-tested set off an alarm bell. I like to see impulse moves bigger than corrective moves. Here, its the other way around. The 2nd alarm bell, was price failed to make a Higher High. Something has changed in the market. Price then consolidated for a while which which was to be expected, along with rejection wicks to the upside. Sellers are now entering the market. Price eventually breaks the long term ascending Trendline. Once the re-test happens at an area of value, (Support becoming Resistance) Im ready to sell. For added confluence, price also rejected the 20 EMA. If you look left structure leaves clues, that was also 4H Resistance awhile back. Then the sell-off finally came.
Price has been in an uptrend for for sometime on this pair, as the Pound has been quite weak. As you can see, it was respecting the ascending Trendline, sometimes to the PIP. The Red arrows are showing Price Action, unable to break 4H Resistance for a few attempts. Once broken, I want to see a re-test of that level which clearly happens. The manner in which it re-tested set off an alarm bell. I like to see impulse moves bigger than corrective moves. Here, its the other way around. The 2nd alarm bell, was price failed to make a Higher High. Something has changed in the market. Price then consolidated for a while which which was to be expected, along with rejection wicks to the upside. Sellers are now entering the market. Price eventually breaks the long term ascending Trendline. Once the re-test happens at an area of value, (Support becoming Resistance) Im ready to sell. For added confluence, price also rejected the 20 EMA. If you look left structure leaves clues, that was also 4H Resistance awhile back. Then the sell-off finally came.
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