EUR/GBP: a structured technical examination. What is next?
As it can be observed from the DAILY timeframe chart on EURGBP, the sentiment of the market is bearish.
After printing a Head&Shoulders pattern and grabbing liquidity above the right shoulder of it, the price experienced a massive drop and is now sitting on a key zone of support.
From here, we are expecting for some correctional moves to happen before the bearish wave resumes and drives the price towards the downside according to the overall bias.
To catch the pullback/correction, we are eyeing the zone below the local support level for BUY entries.
Why?
Since one of our entry criteria is waiting for the price to grab liquidity and gain momentum before making executions with an attempt of catching the pre-start of the move in the pre-determined direction, we believe that we could witness a quick dip into the 0.85100-0.85150 region to take out early participants before charging up for the potentially upcoming short-term bullish moves.
Target-wise, we will be aiming for the zone of previous support that is now acting as resistance that is highlighted on the graphic. To add another confluence, using the Fibonacci tool to preliminarily identify the end of the impulse at our potential entry zone, we might notice how the 50% level nicely lines up with the resistance zone that we are eyeing as our target in the short to middle run.
After printing a Head&Shoulders pattern and grabbing liquidity above the right shoulder of it, the price experienced a massive drop and is now sitting on a key zone of support.
From here, we are expecting for some correctional moves to happen before the bearish wave resumes and drives the price towards the downside according to the overall bias.
To catch the pullback/correction, we are eyeing the zone below the local support level for BUY entries.
Why?
Since one of our entry criteria is waiting for the price to grab liquidity and gain momentum before making executions with an attempt of catching the pre-start of the move in the pre-determined direction, we believe that we could witness a quick dip into the 0.85100-0.85150 region to take out early participants before charging up for the potentially upcoming short-term bullish moves.
Target-wise, we will be aiming for the zone of previous support that is now acting as resistance that is highlighted on the graphic. To add another confluence, using the Fibonacci tool to preliminarily identify the end of the impulse at our potential entry zone, we might notice how the 50% level nicely lines up with the resistance zone that we are eyeing as our target in the short to middle run.
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