EURGBP has taken the daily highs last week and made a clear change in the overall structure
With the current news line up tomorrow London session could see this set up form. on the daily we have a clear gap in the wick that needs filling before the next big leg up. also on the 4 hour we have a FVG and area of reaction.
The news line up for tomorrow is EUR first and then GBP so looking for this to react at this level and then break back up for lower TF market structure before the GBP news.
Keep a close eye on market structure and remember key entry and price action will be needed.
Make sure you use proper risk management when trading.
Let me know how you get on.
Overall structure is still very much bearish at the moment. We still have a LH and LL. That being said I think we could see ECB raise rates again offering strength and see a proper HH form. If this is followed by a strong HL then we could be turning. At this stage though we could see a spike with the news to clear the high you have marked out before coming back in to your entry.
With EURGBP dropping down over the last few days we could be seeing a retrace from the bullish move last week back below the 50% area ready to move up again.
We have seen the strength in GBP with the interest rate rise pushing this pair back down.
I will be looking out for a mid week move and a break in lower TF structure to show some bullish momentum before I look to enter.
Bear in mind there is another level at the 79% on the fib that we could push on down to and then break to the upside from there longer term. with both ideas I am still looking for buys to come in to play by the end of the week.
Keep a close eye on market structure and remember key entry and price action will be needed.
Make sure you use proper risk management when trading.
Let me know how you get on.
It is a good zone to go long. The price reacted at this level earlier, thus there is a very good chance it may end up producing a good bullish reversal pattern. Thanks for sharing your trading idea.
OB below was capitalised. Seems to have reacted there. Personally I want to see price come down into the one at the 79 retracement with the gap. Good few confluences there.
The pair after making a strong bearish move gets caught within that horizontal channel. A bearish breakout may drive the price towards the last swing low. On the other hand, a bullish breakout would push the price towards the North.
