EUR/GBP Bullish Trade Plan - Multi Timeframe Analysis
Good morning traders, today we will analyze a potential bullish opportunity in EUR GBP, since it is at a critical level, and there is the potential for our situation to resolve in our favor.
First, we must clarify why we are looking for a bullish opportunity.
🔸If we analyze the macro context, we see that in the daily chart the price is trying to penetrate a resistance zone, but has not yet managed to consolidate above it.
🔸In case the price breaks out clearly, there is a possibility that it will generate a movement towards the next resistance zone.
🔸What we must do now is to reduce the timeframe to look for a setup with a good risk-benefit ratio.
🔸We need a short-term breakout of the Resistance zone for our bullish scenario to activate.
🔸Then, we will wait for a correction or retest towards the broken zone, since we need a corrective structure that allows us to position the stop loss safely.
🔸 We always look for a potential Risk to Reward ratio above 1:2.
🔸In case it happens, we expect the breakout of this structure and an upward momentum towards the descending trendline.
First, we must clarify why we are looking for a bullish opportunity.
🔸If we analyze the macro context, we see that in the daily chart the price is trying to penetrate a resistance zone, but has not yet managed to consolidate above it.
🔸In case the price breaks out clearly, there is a possibility that it will generate a movement towards the next resistance zone.
🔸What we must do now is to reduce the timeframe to look for a setup with a good risk-benefit ratio.
🔸We need a short-term breakout of the Resistance zone for our bullish scenario to activate.
🔸Then, we will wait for a correction or retest towards the broken zone, since we need a corrective structure that allows us to position the stop loss safely.
🔸 We always look for a potential Risk to Reward ratio above 1:2.
🔸In case it happens, we expect the breakout of this structure and an upward momentum towards the descending trendline.