EUR/GBP sold off on daily chart and has hit major level 0.90500 forming support but with resistance caution above.
EUR/GBP – A hold above flag break out is a great signal for continuation. The Fibonacci range has set some solid levels for targets with reclaim of EMAs as a positive signal for momentum.
- Price holding below the 200 EMA
- Price holding below the 50 EMA
- 21 EMA hugging 50 EMA and ready to break above with price action momentum
- Flag pattern for break ou
Support – 0.90561, 0.90835, 0.90915
Resistance – 50 EMA, 200 EMA, 0.91450, 0.91900
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 0.90835
Supporting Entry – 0.90915
Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 0.90561– this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 0.90835 – Target 1 0.91450 = Reward to Risk
Optimal Entry 0.90835 – Target 2 0.91900 = Reward to Risk
Supporting Entry 0.90915 – Target 1 0.91450 = Reward to Risk
Supporting Entry 0.90915 – Target 2 0.91900 = Reward to Risk