EURGBP has been very bearish on the H4 chart. The price has kept making lower lows by making new breakouts. Yesterday’s price action was choppy. The pair has had a pullback. A Fibonacci level is held by the H4 candles. If the level is held and produces a strong bearish reversal candle, a breakout at yesterday’s lowest low would be the signal to go short on the pair later today. Let us have a look at the H4 EURGBP chart. This trade idea was generated by our powerful Elite Swing Trader System.

The price had a bounce at the level of 0.88370 yesterday. The level of 0.88645 is a Fibonacci level which has been working as resistance so far. The level has already produced an H4 inside bar. This is not a strong bearish signal. However, there is still a possibility that the level ends up producing an H4 bearish engulfing candle. If that happens, an H1 breakout at the level of 0.88370 would be the signal for the sellers to go short on the pair. Let us have a look at the summary of the trade...

• Sell Stop Order: 0.88388
• Stop Loss: 0.88949
• Take Profit: 0.87690

The USD is going to get very volatile because of FOMC’s events. Though the EURGBP is not directly related to the USD but to be safe it is better not to let the trade run during those news events. If the current H4 candle comes out as an H4 bearish engulfing candle and we get an H1 breakout within two H1 candles, then it should be alright to take the entry. Otherwise, we shall skip taking the entry. For more trade ideas, join the Price Action Society...   If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about the Price Action Society.