What’s Going On with Our EUR/GBP Signal?

Posted Friday, January 13, 2017 by
Skerdian Meta • 1 min read

Yesterday, we opened a short term sell forex signal on EUR/GBP. This pair has been in an uptrend recently and yesterday in the afternoon, it took place at the latest leg of this uptrend. We tried to pick a top as that upward move was fading out. 

We should have waited a bit longer though, so we could have gotten a better entry price for our forex signal. Maybe waiting to get close to Tuesday´s high would have been better, but right now, this signal doesn´t look so bad.

Third times the charm for sellers?

On the H1 forex chart above, we can see that the price just failed for the third time at the 0.7840-50 level, which of course, is good news for EUR/GBP sellers. 

The previous hourly candlestick closed as an upside down hammer, which is a trend reversing signal. Besides that, the following candle closed pretty bearish, so that confirms the trend reversal chart pattern.  

The divergence can be easily spotted. 

The daily chart looks quite favourable as well. Stochastic and RSI are oversold and there is some sort of divergence between the price and stochastic. A divergence like this is not the strongest sell signal, but all these signals together on both forex charts make up for it.  

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About the author

Skerdian Meta is our Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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