Another successful trade idea from the weekly forecast plan is the EURGBP. We were looking for further continuation down, for the price to reach the coinciding points of the fibonacci expansion levels.
Looking for quality forex education?
Let’s quickly review the idea:
EURGBP D1 chart – Multiple Fibonacci Expansion Levels
The critical supportive zone created by the two fibonacci expansion tools gives us the zone between 0.8475 (fibonacci expansion 100% from the first measurement) down to 0.8400 (fibonacci expansion 61.8% from the second leg that was measured).
Looking left we would also notice a distinguishable supportive zone, marked by the previous daily lows. The support meets the beginning of the fibonacci zone we mentioned above, making the 0.8470 area a key level.
The first scenario we discussed in the weekly forecast article suggested that if we get a breakout below the most recent trend line a push lower towards the critical supportive zone should follow:
The pair broke, re-tested the trend line and made a nice push lower providing good profits.
Yours to success,