The EURGBP has moved higher after forming a false break. This false break was a bullish rejection candle that was making a clear false break of a proven support level. Whilst the false break candle was not a valid pin bar because the nose was not long enough to meet the minimum requirements, it has still sent price higher at the start of the week.
If price now continues to move higher, traders may be able to start hunting short trades at the over head key resistance kill zone. This resistance level is a previous tested and proven level. The trend on this pair has been lower on the daily chart and looking for short trades at this key resistance would be trading in-line with this current down-trend. Traders could look for short trades on the daily and intraday charts such as 4hr & 8hr charts.
EURGBP DAILY CHART
Leave a Reply