The idea is to trade the Bullish divergence in the EUR/GBP pair. For confirmation a buy order is placed just above the previous high, a break of which will mean at least a short-term reversal of the downtrend. RSI looks seriously oversold both on 4h and Daily timeframes, thus a pullback is expected. Furthermore, price approached a significant support level, from which we have seen strong retracements in the past (Daily timeframe). TP1 based on the 38.2 Fib rertracement, TP2 - 50% Fib. Sl below the recent low. Those who want additional confirmation could wait for the break of the downtrend line, but then the RRR would be significantly lower.
We can still see a move lower and fundamentally GBP looks pretty strong, thus am going to risk with just 25% of my usual risk level.
We can still see a move lower and fundamentally GBP looks pretty strong, thus am going to risk with just 25% of my usual risk level.
Trade active
Trade closed: target reached
Both profit targets achieved!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.