EUR/GBP: Possible short move down, after correction up to diagonal and horizontal resistance

03.03.2017 / 03:19

Rating:

EUR/GBP:

Date: 3 March, 2017

H4 Graph: Medium term short Trend

After price made a bottom around 0.84200, started going up and this again looks like only a correction of the previous short move. Price stopped its up move at Fib 38.2% level. Also we see diagonal and horizontal resistances just above the price at current levels at 0.8600. 50 ЕМА remains below the 200 ЕМА giving us tendency for short still.

Price Action: 3 doji bars on a row at a level of strong diagonal and horizontal resistance - Possible signal for short

DEM: Near the vicinity of the overbought zone but pointing down for short. Bearish divergence of the indicator and price.

Alternative scenario: If the price start going up again and passes over the previous high at 0.8600, this will cancel the bearish setup for sure.

Price for Entry short around: 0.85800

SL: 0.86200

Trader - S. Fuchedzhiev

Varchev Traders

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

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.

EUR/GBP: Possible short move down, after correction up to diagonal and horizontal resistance

London

Universal numbers