Keep Shorting the EURGBP, A Gap That Must Be Filled

20 Nis 2022

EURGBP has reached a new 5-year low last month,dropping to the area of 0.8200. This gap hasn't filled yet, and now the price is on its way to test the 0.8200 level again after completing its retracement from the 0.8500 level. The price is currently moving within a bearish flag structure and has retested the previous support level but was rejected. From here, perhaps we can see the price creating a head and shoulder pattern and then breaking the neckline to continue its downtrend toward the 0.8200 area. Our task now is to wait and see a reversal pattern being formed and a breakout. After the breakout with candle closing below the neckline area of 0.8283 , we will place our sell limit order at the neckine of the pattern to capture the retest. SL is placed at about 5 pips above the third shoulder. A good aspect of EURGBP is that a gap tends to get filled more often than other volatile currency pairs and its trend is persistent.

We will update this post after the price moves close to our entry criteria.

21 Nis 2022

Emir iptal

The price has failed to break the neckline and instead, made a higher high, thus we have decided to cancel this trade setup. Nevertheless, we are still bearish on EURGBP and expect this pair to fill the gap at the 0.8200 area. We will come back with a new post when another setup is identified.