Hi Traders! EURGBP forecast update and follow up is here. On July 1st I shared this “EURGBP Forecast” 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!
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Now let’s summarize the idea first:
D1 – The price tested and false broke the 0.91 psychological zone. Bearish divergence.
We also have the 61.8% (0.90920) fibonacci expansion level of the first wave coinciding in the same zone, which makes this area a key resistance zone for us. The price is currently holding below this key resistance zone.
H1 – Bearish trend pattern.
Expecting further continuation lower after pullbacks.
EURGBP H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bearish here and I was expecting the price to continue lower after pullbacks. On the H1 chart, the pullback that we were looking for happened and then the price moved lower as per my forecast delivering around 100 pips move.
Currently, we have a potential bullish divergence in play on the H4 chart, this is something that we definitely need to pay attention to as it is an opposite evidence. So if you are still involved in the sells then this is a very important place to consider and manage your trade (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with). When you find an opposite evidence you should always consider managing your position.
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As traders we should always follow the facts, it doesn’t matter what view you had yesterday, what matters is what happens in the market today because the market is dynamic and it doesn’t necessarily have to agree with the way you see it. As long as the market follows my ideas and validates my setups I can trade and if it doesn’t switch, have a different read and turn around when required.
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To your success,
Vladimir Ribakov
Certified Financial Technician
