Great risk-reward setup forming in EURGBP

The pair seems to be creating a correcting move up after the big drop we saw in the past months. We talked about similar setup last week which never happened so I continue to follow this pair closely. After the break of the trend line on the Daily chart we can expect the pair to continue higher completing a double wave up. On the H4 chart the pair created a false break along with a trend line break. The plan to join didn’t change much. We are looking for a higher high to be created, forming convergence and then we will look to buy on the correction from the smaller time frames.

Technical Overview:

D1 – Down trend line broken after a double move down, band to band move

H4 – False break, trend line broken, higher lows

H1 – bullish convergence

Entry:
H1 – Look for double wave correction down from the current market price or a bit higher, preferably with hidden bullish divergence to form and then go long.

Target 1: Daily 20 MA
Target 2: 0.7373
Target 3: 0.7540
Stop Loss: below 0.7165

Video Explanation

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