Welcome to another blog by AspireFX, today we’ll be running over some technical analysis on EURGBP.
Looking at the daily time frame we can see that price is ranging between an ascending trend line as well as a descending trend line. We’ve also seen a reversal off of the 78.6 bullish Fib level with a bullish engulfing forming at the moment. Seeing as though we are in a bullish market, let us drop down to the lower time frames to look for potential long set ups.
On the 4 hour time frame, we can see that we are currently sitting on the 61.8 on the bearish Fib but with 3 hours left until the close of the current candle, I wouldn’t consider it to be a valid rejection of that level yet.
Drawing a descending trend line on the 1 hour time frame we can see we’ve already had 3 touches. If this trend line provides further resistance, we could look for potential buys around the ascending trend line drawn on the daily time frame. The other possible scenario would be to wait for a break and retest of the descending trend line drawn on the 1 hour time frame.
When you’ve found a pair that is working for you, it’s helpful to look at a few potential scenarios that could play out so that if one of your set-ups are invalidated, you have more analysis to back it up. Hit the subscribe button below to receive updates sent directly to your email.