EUR/GBP Trading ReportDate: August 15, 2024
Instrument: EUR/GBP
Timeframe: 4 H
Trade Type: Long Position
1. Market Analysis:
Pattern Observed: A bullish flag has formed and completed on the EUR/GBP chart, signaling a potential continuation of the prior uptrend.
Pattern Characteristics: The bullish flag is a continuation pattern that typically follows a strong upward move, with the flag portion representing a brief consolidation before the trend resumes.
2. Trade Setup:
Long Position:
Entry: Planning to enter a long position at 0.85319 OR at the breakout above the flag's upper boundary, confirming the continuation of the uptrend.
Stop Loss: Placing a stop loss below the flag's lower boundary or recent low at 0.85092, to protect against a false breakout.
Take Profit: Targeting the next significant resistance level or measured move objective at 0.86374, based on the height of the flagpole.
3. Risk Management:
Position Size: Adjusting the position size to risk no more than 1-2% of trading capital.
Risk-Reward Ratio: Ensuring a risk-reward ratio of at least 1:4, providing a favorable potential outcome.
4. Outlook:
Bullish Bias: The completion of the bullish flag suggests strong bullish momentum, with the potential for further upside as the trend resumes.
