EURGBP: 13.02.2017
Time frame: D1
Downtrend with correction forming "head and shoulders". Trend-confirming figure that allows us to enter in the direction of the trend.
The correction has reached 50% Fibonacci level and is back down - negative signal.
At the moment the price is around the neckline and have to wait for breakthrough it and close there. More aggressive traders can occur on H4 chart and wait for breakthrough the neckline to enter earlier. The conservative method is to wait after breaking and test the neckline that will become resistance.
Technical indicators:
CCI 50 - 0 break downwards - signal a decrease.
DeM - does not provide a clear signal.
SMA50 / 200 - gives mixed signals.
SL: 0.870
Alternative scenario: If the daily bar close above the neckline then we can expect new short-term upward movement.
Jr_Trader_Ivan_Ivanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.