EUR/GBP short to 0.90600
Potent gravestone doji candle confirmed on Fridays 4-hour time frame close at major resistance 0.91000, signaling bearish momentum for EUR/GBP.
- 4 Hour – Gravestone Doji @ 0.91000
- 1 Hour – Crossing trend line
- RSI in overbought territory
- At upper Bollinger band
Support – 0.90600, 50 EMA, 200 EMA, 0.90375
Resistance – 0.91000
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 0.90894
Candle Reversals for entry
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 above 0.91080 – 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 0.90894 – Target 1 0.90600 = 1.5x Reward to Risk
Optimal Entry 0.90894 – Target 2 0.90375 = 2.7x Reward to Risk