Euro / British PoundShort
ANALYSIS OF EURGBP TRENDS WITH DOWN
The chart represents the EUR/GBP currency pair on the 4-hour timeframe using Heikin Ashi candles. Here’s the analysis:
Observations:
1. Resistance Zone:
A strong resistance level is marked around 0.8327, indicating repeated price rejection at this zone (highlighted by orange circles).
2. Support Levels:
Two prominent blue lines represent key support levels:
First Support: 0.8260
Second Support: 0.8223 (Diamond Zone), which is the significant area of interest.
3. Diamond Pattern:
A "diamond zone" is identified as a potential key breakout/breakdown area. This structure often indicates an upcoming price move.
4. Trendlines:
A yellow trendline shows the recent downward momentum.
The price action suggests the possibility of lower highs and lower lows, implying bearish sentiment.
5. Projected Movement:
Blue arrows indicate a bearish outlook:
The first downward move targets the first support level.
If breached, the price may head toward the diamond zone (second support level).
Conclusion:
Bearish Bias: The chart suggests EUR/GBP may continue its bearish movement, especially if the resistance at 0.8327 holds strong.
Trading Strategy:
Entry: Look for confirmations (e.g., rejection candles or strong bearish momentum) near resistance for potential short positions.
Targets:
TP1: 0.8260
TP2: 0.8223 (diamond zone)
Stop Loss: Place it above 0.8330 to protect against invalidation of the bearish setup.
Monitor price action at key levels for confirmation.
Observations:
1. Resistance Zone:
A strong resistance level is marked around 0.8327, indicating repeated price rejection at this zone (highlighted by orange circles).
2. Support Levels:
Two prominent blue lines represent key support levels:
First Support: 0.8260
Second Support: 0.8223 (Diamond Zone), which is the significant area of interest.
3. Diamond Pattern:
A "diamond zone" is identified as a potential key breakout/breakdown area. This structure often indicates an upcoming price move.
4. Trendlines:
A yellow trendline shows the recent downward momentum.
The price action suggests the possibility of lower highs and lower lows, implying bearish sentiment.
5. Projected Movement:
Blue arrows indicate a bearish outlook:
The first downward move targets the first support level.
If breached, the price may head toward the diamond zone (second support level).
Conclusion:
Bearish Bias: The chart suggests EUR/GBP may continue its bearish movement, especially if the resistance at 0.8327 holds strong.
Trading Strategy:
Entry: Look for confirmations (e.g., rejection candles or strong bearish momentum) near resistance for potential short positions.
Targets:
TP1: 0.8260
TP2: 0.8223 (diamond zone)
Stop Loss: Place it above 0.8330 to protect against invalidation of the bearish setup.
Monitor price action at key levels for confirmation.
Disclaimer
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