Hi Traders! EURGBP buy idea update and follow up is here. On April 6th I shared this “EURGBP Buy Idea From Key Support Zone After Bullish Divergence” post in trading view. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
EURGBP H4(4 Hours) Chart Current Scenario
Based on the above mentioned analysis my view was bullish here and I was expecting the price to move higher further in the short term until the key support zone holds. The price action followed my analysis as I expected it to. The price respected the key support zone and moved higher further delivering around 180 pips move until it was blocked by a bearish divergence.
On the H1 chart, the market provided us with various facts supporting the bullish view. The price which was moving lower reached the key support zone, respected it and bounced higher from this zone. Also the price which was moving lower created a false break of the low at 0.84922 and then the price moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. We also had a bullish divergence on the H4 chart which supports this bullish view, also there were no signs opposing this bullish view. Then as you can see in the image below how the price moved higher after that.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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To your success,
Vladimir Ribakov
Certified Financial Technician
