GBP/BGN - H4
Our expectations - The pair is in the mid-term descending channel that is tested during the last correction in ascending direction. The price has reached a resistance zone that provides good levels for positioning with short on the trend. The zone is formed by a basic horizontal, diagonal, 200SMA and 38.2% Fibonacci correction of the main trend. In support of the short is the pure Price Action - Available bearish absorbing bar in the resistance zone - negative for the price. The price is currently testing a 50% correction for the formation, and this gives us a good positioning capability with a maximum shallow stop. DeMarker is in the overpurchase area but still does not report Short. In contrast, however, DeMarker Sequential counts 9 at the top, forming a down arrow - a strongly negative signal indicating the end of the corrective wave.
SL: 2.1900
Alternative Scenario: If the price passes and stays above the resistance zone, the negative scenario will be spoiled, and we are more likely to see pound growth against the euro (the euro).
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