🧱 1. Market Structure Breakdown
EURGBP has been trading within a descending channel, forming consistent lower highs and lower lows, which indicates a short-term bearish trend. However, price action recently broke out above the upper boundary of this channel, suggesting a potential bullish reversal or trend correction.
This breakout marks a significant structural shift in market behavior.
🔵 Old Structure: Bearish, confined within the channel
🟢 New Structure: Bullish breakout above trendline + key resistance zone
🧩 Implication: Change in directional bias; potential for long opportunities
📍 2. Breakout Confirmation
The breakout was confirmed by:
A strong bullish impulse candle that closed above the descending trendline
Price sustaining above previous resistance (~0.8405)
Increase in bullish volume at the breakout point (if volume indicator is used)
This suggests that the breakout is genuine, not a false spike or liquidity grab.
🌀 3. Retest Phase – The Critical Zone
After breaking out, the market is now pulling back to retest the previous structure. This is a textbook price action move:
🔄 What’s Being Retested?
✅ Upper boundary of the descending channel
✅ Major horizontal support/resistance zone (~0.8405–0.8415)
✅ Broken trendline from previous lower highs
✅ QFL base (Quasimodo level that was swept)
✅ 50% Fibonacci retracement of the breakout move
This zone forms a multi-level confluence area, making it a strong support for potential long entries.
🔍 4. Key Technical Observations
Element Description
📐 Descending Channel Defined the prior bearish structure. Breakout invalidates this bias.
🧱 Trendline Retest Acts as dynamic support; price currently sitting on it.
🔃 SR Flip Zone Old resistance (~0.8405) turned into support—critical level.
📊 Fib 50% Retracement Provides technical alignment with potential buying interest.
📌 QFL/Order Block Zone Historical demand was swept and now being respected again.
🎯 5. Target Levels & Trade Plan
If the structure holds and the price responds bullishly from the current zone, the next levels of interest are:
✅ Primary Target – 0.8460
A clear supply/liquidity zone from previous structure highs
Also aligns with psychological round number and Fib extension
⚠️ Interim Target – 0.8430
Previous intra-channel resistance level
May serve as a short-term reaction point
❌ Invalidation Level
A clean break and close below 0.8390 would invalidate the breakout structure
This would reintroduce bearish pressure and signal a potential fakeout
🧠 6. Trade Idea (Not Financial Advice)
Entry: Around 0.8405–0.8415 on bullish confirmation (e.g., engulfing candle, pin bar, break of minor downtrend)
Stop-Loss: Below 0.8390 (beneath structure & invalidation point)
Take-Profit 1: 0.8430
Take-Profit 2: 0.8460
This offers a high R:R opportunity if managed with proper confirmation.
🧭 7. Risk Management & Considerations
Avoid entering prematurely without a bullish signal (e.g., pin bar, engulfing, RSI divergence).
Monitor macroeconomic news—especially from BoE or ECB—as they can disrupt technical setups.
Scaling into the position or using a split TP strategy can help protect profits.
✅ Conclusion
This EURGBP setup is a textbook case of market structure trading:
A well-defined channel breakout
Followed by a clean pullback to structure
With confluence across horizontal, diagonal, and Fibonacci levels
If price respects this zone, bulls could drive toward 0.8460, offering a solid opportunity for traders who understand structure-based setups.
📌 Always wait for confirmation—structure gives us context, but entries need price action signals to minimize risk.
EURGBP has been trading within a descending channel, forming consistent lower highs and lower lows, which indicates a short-term bearish trend. However, price action recently broke out above the upper boundary of this channel, suggesting a potential bullish reversal or trend correction.
This breakout marks a significant structural shift in market behavior.
🔵 Old Structure: Bearish, confined within the channel
🟢 New Structure: Bullish breakout above trendline + key resistance zone
🧩 Implication: Change in directional bias; potential for long opportunities
📍 2. Breakout Confirmation
The breakout was confirmed by:
A strong bullish impulse candle that closed above the descending trendline
Price sustaining above previous resistance (~0.8405)
Increase in bullish volume at the breakout point (if volume indicator is used)
This suggests that the breakout is genuine, not a false spike or liquidity grab.
🌀 3. Retest Phase – The Critical Zone
After breaking out, the market is now pulling back to retest the previous structure. This is a textbook price action move:
🔄 What’s Being Retested?
✅ Upper boundary of the descending channel
✅ Major horizontal support/resistance zone (~0.8405–0.8415)
✅ Broken trendline from previous lower highs
✅ QFL base (Quasimodo level that was swept)
✅ 50% Fibonacci retracement of the breakout move
This zone forms a multi-level confluence area, making it a strong support for potential long entries.
🔍 4. Key Technical Observations
Element Description
📐 Descending Channel Defined the prior bearish structure. Breakout invalidates this bias.
🧱 Trendline Retest Acts as dynamic support; price currently sitting on it.
🔃 SR Flip Zone Old resistance (~0.8405) turned into support—critical level.
📊 Fib 50% Retracement Provides technical alignment with potential buying interest.
📌 QFL/Order Block Zone Historical demand was swept and now being respected again.
🎯 5. Target Levels & Trade Plan
If the structure holds and the price responds bullishly from the current zone, the next levels of interest are:
✅ Primary Target – 0.8460
A clear supply/liquidity zone from previous structure highs
Also aligns with psychological round number and Fib extension
⚠️ Interim Target – 0.8430
Previous intra-channel resistance level
May serve as a short-term reaction point
❌ Invalidation Level
A clean break and close below 0.8390 would invalidate the breakout structure
This would reintroduce bearish pressure and signal a potential fakeout
🧠 6. Trade Idea (Not Financial Advice)
Entry: Around 0.8405–0.8415 on bullish confirmation (e.g., engulfing candle, pin bar, break of minor downtrend)
Stop-Loss: Below 0.8390 (beneath structure & invalidation point)
Take-Profit 1: 0.8430
Take-Profit 2: 0.8460
This offers a high R:R opportunity if managed with proper confirmation.
🧭 7. Risk Management & Considerations
Avoid entering prematurely without a bullish signal (e.g., pin bar, engulfing, RSI divergence).
Monitor macroeconomic news—especially from BoE or ECB—as they can disrupt technical setups.
Scaling into the position or using a split TP strategy can help protect profits.
✅ Conclusion
This EURGBP setup is a textbook case of market structure trading:
A well-defined channel breakout
Followed by a clean pullback to structure
With confluence across horizontal, diagonal, and Fibonacci levels
If price respects this zone, bulls could drive toward 0.8460, offering a solid opportunity for traders who understand structure-based setups.
📌 Always wait for confirmation—structure gives us context, but entries need price action signals to minimize risk.
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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.
Related publications
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.