EUR/GBP - BEARISH RSI DIVERGENCE | STOCHASTIC & 61.8 FIBONACCI

Dec 10, 2020

• EUR/GBP has pushed upwards and retraced considerably after being sold off for the past few months.
  
• A strong sell signal has formed via the RSI divergence. RSI has been printing lower highs with price printing marginally higher highs, thus showing waning strength.
  
• Stochastic is strongly overbought and crossing over as further confirmation.
  
• Macro 0.618 fibonacci resistance has been touched and failed to be breached on a second attempt now which forms further confluence.
  
• All of the above yields a considerably strong reason to open short position with a target of the strong volume level of 0.903.
  
• Stop will be placed in and around the region of the 0.92 level.
  

Dec 11, 2020

Note

Stopped out of trade but re-opened short position.