Earlier this month, EurGbp broke a bearish trendline and appeared to be in an uptrend and the price was crawling up inside the rising channel. However, after price made a bullish rally yesterday to the top of the channel, there doesn't seem to be any follow through. Price is at the top of the channel and is also touching a major trendline. A pin bar has formed at this juncture and there could be a sell-off and a resumption of the old downtrend.
RSI is also showing some bearish divergence.
Stop loss above pin bar at 0.8040
Target will be at least to the bottom of channel - 0.7940 and could go to support of 0.7915
If price breaks the major bearish trendline and exceeds the high of the pinbar/shooting star, then this idea has failed and my bias will be bullish.
RSI is also showing some bearish divergence.
Stop loss above pin bar at 0.8040
Target will be at least to the bottom of channel - 0.7940 and could go to support of 0.7915
If price breaks the major bearish trendline and exceeds the high of the pinbar/shooting star, then this idea has failed and my bias will be bullish.