EURGBP is opening the downside reversal extension
EURGBP weekly chart is revealing a hard break below, a strong confluence of the downside resistance a descending triangle and a symmetrical triangle as well, an important 0.8620 level. The week is not over yet but if this break will be materialized as we are seeing it on a daily chart below, huge pips potential short trade is coming.
On a daily chart, we can see a clear break below the 0.8620 level . There is a bounce from 0.8530 61.8% extension, but this bounce should be used for new short trade entries with the stop loss just above the 0.8650 level. This is a school example of the rectangle and confluence resistance downside break. Search for the short trade entry opportunities intraday, based on price action, with the stop loss above 0.8650 level targeting 0.8300-0.84000 zone.
We have used the combination of the top-down trading analysis to get these key levels explained on the charts.
Happy trading! (click on the chart to enlarge it)
Special 50% discount on mentoring+six months Gold premium membership!
Mentoring trade less win often
Learn to trade from traders. Improve your trading skills and upgrade your performance by 60%. Powerful retail trading strategy-Trade less size win often (compounding profit trading strategy for retail traders) Increase your trading capital by smart trading compounding, by avoiding risky big size trades which are quickly ruining your capital.