There has been a formation of a downward wedge pattern in a daily time frame chart. This pattern is supported by major support 0.88260 ahead and hence, there is a highly likely chance of a breakout in subsequent trading sessions. Therefore, the pair will hit 1st target 0.90532
With two high impact data to be release for GBP and one for EUR, expecting EURGBP to move towards 0.9312 from where short position could be executed with 15 pips SL and 50 Pips TP.
Note: Stop loss (SL) are to be used for the purpose of risk reduction, given major economic data is to be released a 15 pip SL has been placed for volatility expectation.
Basically the price will gone to down but acc. to symmetrical triangle . The price will move in upward a little bit after that absolutely downward. and there is also a chance that it move directly downward.. So it means profit is earn in both direction !!! :)
Trading suggestion:
. There is still a possibility of temporary retracement to suggested resistance line (0.8955). if so, traders can set orders based on Price Action and expect to reach short-term targets.
Technical analysis:
. EURGBP is in a range bound and the beginning of downtrend is expected.
. Price is below WEMA21, if price rises more, this line...
Sell Below 0.89600 Stoploss- 0.89900 Target- 0.89200-0.88850
Reasons for trade- 1. Price is near to daily channel resistance formed in Aug 17 2.4 Hour chart has formed double top pattern and took resistance twice from 0.89900 levels. 3.multiple support taken near 89.630 which has become weak now. 4.Risk Reward Ration is more than 1:1.5
