📉 Technical Analysis: EUR/GBP just broke out of a clear rising channel on the 1H chart with a strong bearish engulfing candle, signaling an early reversal.
Price failed to maintain momentum above 0.8662 (previous high/resistance)
Massive rejection at the top of the channel, followed by a sharp sell-off
Entry at ~0.8583, SL above highs at ~0.8670, TP targeting near 0.8320 (previous demand zone)
Clean 2.5+ RRR setup 👌
🔎 Fundamentals Supporting Bearish Bias:
GBP Strengthening: Hawkish tone from the Bank of England with expectations of delayed rate cuts, supporting GBP bullishness
EUR Weakness: Euro pressured due to weaker German data and growing expectations that the ECB may cut rates earlier than the Fed/BOE
Recent UK Services PMI also came in stronger than expected, giving a further boost to the pound
Market sentiment shifting toward GBP over EUR due to diverging policy outlooks
📌 Trade Setup Recap:
Trade Type: Instant Sell
Currency: EUR/GBP
Entry Price: 0.8583
TP: 0.8320
SL: 0.8670
Risk:Reward: ~1:2.6
Key Reason for Entry: Rising channel breakdown + strong bearish rejection + fundamental GBP strength
📍 Key Chart Note (for overlay):
“Channel Break + Fundamental Divergence = Sell Setup ✅”
Price failed to maintain momentum above 0.8662 (previous high/resistance)
Massive rejection at the top of the channel, followed by a sharp sell-off
Entry at ~0.8583, SL above highs at ~0.8670, TP targeting near 0.8320 (previous demand zone)
Clean 2.5+ RRR setup 👌
🔎 Fundamentals Supporting Bearish Bias:
GBP Strengthening: Hawkish tone from the Bank of England with expectations of delayed rate cuts, supporting GBP bullishness
EUR Weakness: Euro pressured due to weaker German data and growing expectations that the ECB may cut rates earlier than the Fed/BOE
Recent UK Services PMI also came in stronger than expected, giving a further boost to the pound
Market sentiment shifting toward GBP over EUR due to diverging policy outlooks
📌 Trade Setup Recap:
Trade Type: Instant Sell
Currency: EUR/GBP
Entry Price: 0.8583
TP: 0.8320
SL: 0.8670
Risk:Reward: ~1:2.6
Key Reason for Entry: Rising channel breakdown + strong bearish rejection + fundamental GBP strength
📍 Key Chart Note (for overlay):
“Channel Break + Fundamental Divergence = Sell Setup ✅”
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.