EURGBP Upside Limited - The Correction Continues

This week we are looking at EURGBP and the possible setups that can be taken on it for the next few days or weeks. We will do a top down analysis, starting on the weekly chart then zooming in to the lower trading time frames to look for entries.

If we have a look at the weekly chart, we can see that it seems like there is a complex correction being put in which would move price lower before shooting up again. In the longer term, the red zone seems to look good to get a long position, but waiting for confirmation is important.

The daily timeframe reveals a possible sell zone (grey) which would be good for reversals to the downside. In the mean time, it looks like an upward move is likely. Expect price to be pretty choppy as it is correcting.

On the H4 (or lower), one could also enter a long trade and hold until reaching the sell zone. This kind of setup isn't the best as it is counter trend, giving it a lower probability of hitting targets. Remember, the trend is your friend! Even if your analysis (Elliott or purely structural) is wrong, the trend can still help to push the trade in your direction.

Good luck trading next week! -Be sure to have a look at our other content like the free courses on our page.

-Wian Stipp