Trade Idea: EUR/GBP Long Position

56
Timeframe: 4H
Entry Price: ~0.85168
Trade Type: Buy (Long Position)

Technical Justification:

Bullish Reversal Setup: After an extended downtrend, price action has formed a potential reversal pattern with higher lows, indicating early signs of bullish momentum.

Break of Consolidation Zone: Price has broken above recent consolidation, suggesting a possible trend shift.

RSI Confirmation: The RSI (14) has crossed above its moving average and is currently above 50, supporting bullish momentum.

Risk-Reward Setup: The trade offers a favorable risk-to-reward ratio with a stop-loss set below recent lows at 0.84765 and a target near the previous resistance zone at 0.85980.

Trade Details:

Entry: 0.85168

Stop-Loss: 0.84765

Take-Profit: 0.85980

Risk-Reward Ratio: Approx. 1:2.5

Market Outlook:
This long setup aligns with potential bullish divergence and a structure break on the 4H chart, offering an ideal opportunity for swing traders anticipating a correction or trend reversal.

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