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Currency
by Seth Parker on October 25, 2018

EURGBP Analysis – Nice sell signal!

Forex section in our technical analysis opens the EURGBP, where we are very close to another proper sell signal. As always, I have to mention the previous piece about this instrument and today I am doing that with extra pleasure as that was a technical masterpiece! For the last time, we were talking about the EURGBP on the 10th of October and we saw a chance for a bullish correction:

“Bears are fully controlling the situation. But wait, after such a strong drop, we need to see some kind of a bullish correction. This one is probable but should be a normal take profit action. Sell signal is on as long as we stay below the blue horizontal resistance. „

eurgbp chart

This is precisely what happened. The price made a bullish correction and went higher creating a flag pattern (blue). Flag ended on the horizontal resistance (yellow) and the dynamic down trendline (red) creating a double top formation. That is a super strong sell signal. With this kind of a price action we should definitely go lower in the next few weeks. Sell signal is on, as long as we stay below the yellow resistance.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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