Eurgbp short opp

[jaikara]

first time posting, so not sure if im doing this right, but the pair looks like a short from 8699...targetting 50 pips

[trustFX]

looks like long now?!

• double bottom
• passed resistance of high between the two bottoms
• currently retracing

Go long on reversal candle around the 50/61.2 Fibonacci retracement level? That zone (0.8650-0.8680) falls in the same range as the support (former resistance) of the high between the two bottoms?!

Any thoughts?

[jaikara]

Hi Trust, well I see the 240 fib support there, but unfortunately Im short from the daily res...so ill stay in until i get a 240 bullish candle formation. Only then will I consider a long. But the 60 still holding the trendline (I see the macd bullish divergence there though), its a waiting game.

[cadarkitek]

The long term trend shown on the weekly is bullish. Note the test of the 61.8 at the weekly up trend line. We been going north since.
eurgbpw.jpg
However I took a short trade this week after the market shows a reversal(maybe short term) when it test the daily down trend line followed by bearish reversal candle formation at the fib. 61.8(blue fibs).
I'm now looking for a bounce/reversal formation at the 61.8(brown fibs) where we also have past resistance now support at the current daily up trend line to enter long again. Also note that on the daily theres a bearish Gartley pattern, these are normally strong reversal patterns. so its possible we might get a good bearish run before the uptrend continues. Either way there will be opportunities to enter.
eurgbpd.jpg

[trustFX]

cool. thanks for the feedback. definitely will be watching this one.

[cadarkitek]

It possible the bearish run has been short-lived as the market is now showing bullish reversal formation(Morning Star) at the 38.2 fibs on the daily time frame, note also we have past resistance now support at this level. Its possible we might see a break of the down trend line through-out this week, if his happens it will further strengthen my bullish bias. If the daily bar close as is I will be looking for LONG entries on smaller time frames.