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EUR/GBP at Highest Levels in Over Two Years.

August 12, 2019 | 3:13 am | The 5%ers' Blog > Trading Room
August 12, 2019 | 3:13 am
The 5%ers' Blog > Trading Room
EUR/GBP at Highest Levels in Over Two Years.

What Should we Wait For in Order to Sell EUR/GBP?

Monday 12/08/2019

EUR/GBP just arrived at the highest price level in the last two years.

The GBP is losing power against most of the currencies in the market,

The main reason for that drops in the GBP is the Brexit issue.

As we can see the EUR/GBP just reaches a resistance zone which we can see on the monthly chart.

Since the price already visit that resistance a few times before I won’t sell on the first touch, butI’ll still look for a signal to sell.

In the H4 chart, we can see a significant divergence between the MACD indicator and the price.

While the price creates a higher high the MACD creates a lower high, which indicates a powerless movement of the price.

The MACD divergence is a sign of powerless price but not a signal to sell.

One of the options is to wait for the price to break out the last low in the H4 time frame and then look for price action setup for sell position.

It can be a fresh supply or any other candlestick pattern.

Another option is to wait and see if the price will perform some bearish engulfing candlestick in the H4 or H1 time frames.

The first target for this sell position will be the demand below in the H4 chart,

And the final target will be 0.8700 zones.

 

 

 

 

 

 

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