EURGBP Decision Point
Left chart is the weekly of EURGBP. It is clear that the price is testing a prior key swing high and has been a major resistance level around 0.8850.
While fisher indicators is overbought on the weekly, the recent rally has tentatively broken that resistance, but retreating back as we approach the end of the week. This could be signal that the week might close below that level, and that keeps it a valid resistance according to my approach.
However, we still don't know if it will close above or below the level, as the price is retesting the resistance-turned-support over the shorter term, as you can see on the four-hour chart. The selloff stalled at this level.
I don't have a clue whether the price will bounce back higher and maintain the breakout or retreat back lower. However, i trade what i see and react according to what the price shows, and therefore, if we manage to break back below that level and hold, that would favor the short scenario. I would look to short any upside pullbacks.
The other scenario would be the ability to retain the short term uptrend and bounce back higher to close the week above resistance. In this case, i would favor the long scenario and look to buy short term pull backs.
I thought i would share my thoughts and playbook for the pair, as it could be beneficial to anyone and might turn to be an excellent trade.
As traders, any scenario we anticipate has good probability of failure, that's why we trade with care and manage our risk.
Trade Safe.
Best
Technician
While fisher indicators is overbought on the weekly, the recent rally has tentatively broken that resistance, but retreating back as we approach the end of the week. This could be signal that the week might close below that level, and that keeps it a valid resistance according to my approach.
However, we still don't know if it will close above or below the level, as the price is retesting the resistance-turned-support over the shorter term, as you can see on the four-hour chart. The selloff stalled at this level.
I don't have a clue whether the price will bounce back higher and maintain the breakout or retreat back lower. However, i trade what i see and react according to what the price shows, and therefore, if we manage to break back below that level and hold, that would favor the short scenario. I would look to short any upside pullbacks.
The other scenario would be the ability to retain the short term uptrend and bounce back higher to close the week above resistance. In this case, i would favor the long scenario and look to buy short term pull backs.
I thought i would share my thoughts and playbook for the pair, as it could be beneficial to anyone and might turn to be an excellent trade.
As traders, any scenario we anticipate has good probability of failure, that's why we trade with care and manage our risk.
Trade Safe.
Best
Technician
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