đź“Ś Overview:
The EUR/GBP pair is showing signs of bearish continuation after failing to break above key resistance levels. Price action indicates a potential downward move towards a major support zone, aligning with the overall market structure.
🔎 Technical Analysis:
The pair has formed a lower high, indicating weakness in bullish momentum.
A breakdown from the recent consolidation zone suggests sellers are in control.
Price has breached a key support level, turning it into a resistance zone.
The market structure indicates a potential drop towards 0.82773, which aligns with a previous support area.
đź“Š Key Price Levels:
âś” Resistance: 0.84000 - 0.84200 (previous support turned resistance)
âś” Current Price: 0.83876
âś” Target: 0.82773 (major support and liquidity zone)
âś” Stop Loss: Above 0.84000, invalidating the bearish setup
📉 Trade Plan & Execution:
🔹 Entry Strategy:
Traders can look for a retest of broken support (now resistance) near 0.84000 to confirm selling pressure.
A bearish rejection candle (such as a shooting star, bearish engulfing, or pin bar) could confirm the continuation of the downward trend.
🔹 Profit Target:
The primary target is 0.82773, which acts as a strong demand zone from previous price action.
🔹 Risk Management:
A stop loss should be placed above 0.84000, as a break above this level would invalidate the bearish setup.
Maintaining a favorable risk-to-reward ratio (1:2 or better) is advisable for optimal trade execution.
📢 Market Outlook & Considerations:
âś… Bearish Confirmation: Sustained rejection from resistance and lower highs strengthen the bearish outlook towards 0.82773.
🚨 Bullish Reversal Risk: A break above 0.84000 could invalidate the setup, signaling a potential return to bullish momentum.
đź“Š Fundamental Factors: Keep an eye on GBP and EUR-related economic data, central bank policies, and risk sentiment, which could impact price movements.
The EUR/GBP pair is showing signs of bearish continuation after failing to break above key resistance levels. Price action indicates a potential downward move towards a major support zone, aligning with the overall market structure.
🔎 Technical Analysis:
The pair has formed a lower high, indicating weakness in bullish momentum.
A breakdown from the recent consolidation zone suggests sellers are in control.
Price has breached a key support level, turning it into a resistance zone.
The market structure indicates a potential drop towards 0.82773, which aligns with a previous support area.
đź“Š Key Price Levels:
âś” Resistance: 0.84000 - 0.84200 (previous support turned resistance)
âś” Current Price: 0.83876
âś” Target: 0.82773 (major support and liquidity zone)
âś” Stop Loss: Above 0.84000, invalidating the bearish setup
📉 Trade Plan & Execution:
🔹 Entry Strategy:
Traders can look for a retest of broken support (now resistance) near 0.84000 to confirm selling pressure.
A bearish rejection candle (such as a shooting star, bearish engulfing, or pin bar) could confirm the continuation of the downward trend.
🔹 Profit Target:
The primary target is 0.82773, which acts as a strong demand zone from previous price action.
🔹 Risk Management:
A stop loss should be placed above 0.84000, as a break above this level would invalidate the bearish setup.
Maintaining a favorable risk-to-reward ratio (1:2 or better) is advisable for optimal trade execution.
📢 Market Outlook & Considerations:
âś… Bearish Confirmation: Sustained rejection from resistance and lower highs strengthen the bearish outlook towards 0.82773.
🚨 Bullish Reversal Risk: A break above 0.84000 could invalidate the setup, signaling a potential return to bullish momentum.
đź“Š Fundamental Factors: Keep an eye on GBP and EUR-related economic data, central bank policies, and risk sentiment, which could impact price movements.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.