EUR/GBP For a short position?
Hello guys. This is the EUR / GBP daily chart. Here we have a crash of two trends; one is a downward trend and it is a longer trend while the other is a short term trend and that trend is bullish. You can see this if you draw two channels as in the picture. Here it is necessary to take into account certain important points. First there is the butterfly pattern that 1.272 target represents the point at which a reversal can occur. If you look at the chart, you can clearly see that this was the exact moment of the bull slowing down. Now the price is consolidating, so we have no signs of what will happen next, but we can wait for confirmation, to be safer. Namely, we can wait a few days to see if the price will reach the target of 1.618 butterflies (this is the last destination of butterfly), or, if this does not happen (that is, if the last peak is not reached again) we can look for an opportunity for a short position. So, if you don't have any short position already, and you want to have it, there is no reason to worry because the situation is still very speculative, so it is better to wait for the daily closing below the falling channel (which would confirm the butterfly (1.272) and the intention to go lower, and such an action would be treated as a fakeout to higher, and it would be a relatively safe sign to sell). In the second scenario, if we see higher prices, then we can wait for the price to reach 1.618 ext target and consider a short position there.
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