Hi Traders! EURGBP bearish reversal expected from the top of the daily channel. A detailed analysis of this setup is as follows:
EURGBP Daily Chart:
On the daily chart the price is moving inside a channel. This channel is formed by the highs and lows reaching parallel support and resistance zones. Currently the price is nearing the top of this channel and once it reaches this top, if we didn’t get a valid breakout then we may expect a bearish reversal to happen from here. We may look for more confirmations regarding this on lower timeframes.
EURGBP H4 Chart:
On the H4 chart we have two magnet zones that has formed based on the cycles. Currently the price broke above the first magnet zone and is holding above it. We may now expect it to move higher further and reach the second magnet zone (this coincides with the top of the daily channel) and then a reversal to happen from here. We also have a potential bearish divergence that is forming at the moment, once this divergence completes itself we may then consider it as a confirmation for the bearish momentum. Once the price reaches this magnet zone, look for bearish evidences and then we can start looking for sells.
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