EURGBP Short Position (05-11-21 at 9 PM)
Updated
Price breached a clear diagonal support area on the 1h EURGBP chart.
Here are the entry qualifications that convinced me to take a short position:
1.) Price seemed to have retraced to and confirmed the former support area as a resistance area
2.) A bearish engulfing candle had formed within the new resistance area
3.) Price breached the 8 EMA with a strong bearish move
4.) Price was still making LHs and LLs
My TP area will be a little before the next psychological level of 0.85500, which I think it will hit during wither the London or New York session.
Here are the entry qualifications that convinced me to take a short position:
1.) Price seemed to have retraced to and confirmed the former support area as a resistance area
2.) A bearish engulfing candle had formed within the new resistance area
3.) Price breached the 8 EMA with a strong bearish move
4.) Price was still making LHs and LLs
My TP area will be a little before the next psychological level of 0.85500, which I think it will hit during wither the London or New York session.
Note
I forgot to mention a 5th qualification that played a role in my analysis:5.) Price is moving below both the 200 and 50 EMAs
And I, of course, meant to say 'either' instead of 'wither'. Haha.
Trade active
Unfortunately, the trade reversed right before hitting my TP while I was asleep, but I'm holding on to the trade because I think it will still hit TP when it goes back down. As a matter of fact, I moved my TP down a little bit to 0.85520 (a little closer to the psych. level of 0.85500), for a RRR of 1:3.
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