EUR/GBP - Current View
Here on the 1h TF we see a potential 2618 trade setup as well as a potential bullish bat pattern awaiting completion at D leg
1.) There is a triple top with bearish divergence which shows major resistance
2.) When the price breaks the neckline I will set alerts as the price will not just break a support level but it will also nearly approach another support level. Before entering a short position I will wait for an outside return (pullback) from the second support level (first blue line) to resistance which is the neckline (support becomes resistance)
3.) For my short my targets will be set to the D leg of the potential bullish bat pattern, this is because it not just the completion of the bullish bat but also a major support level
4.) When the bullish bat is completed my targets will be set to the neckline (which is between the 0.618 and 0.5 fibonacci levels of the X-A leg) and my stops will be below the X leg (just below support level)
1.) There is a triple top with bearish divergence which shows major resistance
2.) When the price breaks the neckline I will set alerts as the price will not just break a support level but it will also nearly approach another support level. Before entering a short position I will wait for an outside return (pullback) from the second support level (first blue line) to resistance which is the neckline (support becomes resistance)
3.) For my short my targets will be set to the D leg of the potential bullish bat pattern, this is because it not just the completion of the bullish bat but also a major support level
4.) When the bullish bat is completed my targets will be set to the neckline (which is between the 0.618 and 0.5 fibonacci levels of the X-A leg) and my stops will be below the X leg (just below support level)
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