EURGBP Price Action Analysis – 29th Nov 2018
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EURGBP has been down trending on the H4 chart by obeying a Trendline. The price is approaching the level of resistance, so it may be the time for the H4 chart trader to keep an eye on the pair to get an H4 Bearish Engulfing Candle to go short on the pair. Let us have a look at the H4 EURGBP chart.
As the chart suggests that the price has been down trending by obeying a Trendline. Moreover, the price is approaching the level of 0.88780 which is a very significant level of horizontal resistance. The price had reacted to that level heavily earlier. If the price goes back to the level and the level produces an H4 Bearish Engulfing Candle, then selling the pair would get us some green pips. Summary of the trade…
- Sell Limit Order: 0.88780
- Stop loss: 0.89500
- Take profit: 0.87900
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The level we are aiming at producing the H4 Bearish Engulfing Candle that would be a Dynamic Resistance Level. It is called Dynamic Resistance Level because a horizontal resistance line and trendline resistance line both meet at that point. Dynamic Resistance Point or Dynamic Support Point both have a huge impact in the Forex market. If they end up producing an Engulfing candle to the direction of the trend, very rarely an entry would go wrong. This means two equations we have to remember here
- Dynamic Support/Resistance Point
- Bullish/Bearish Engulfing Candle
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