Facts:
- EURGBP bounced off the key resistance area at 0.8460
- The pair has been trading in a downward trend from 11th of April
Recommendation:
Trade: Short position on EURGBP at market price
Target: 0.8408, 0.8369
Stop Loss: 0.8475
Opinion: EURGBP has been trading in a downward trend recently. Taking a look at the H4 interval, we can see that the pair bounced off the key resistance, signalling a potential bearish trend resumption. The resistance area at 0.8460 is marked with the upper limit of 1:1 structure and previous price reactions. According to the Overbalance strategy, as long as the price sits below the 0.8460 resistance area, one should expect the price to continue to fall. Taking this into account, we recommend going short EURGBP at market price with two targets: 0.8408 and 0.8369. We also recommend placing a stop loss at 0.8475. Source: xStation5
