My take on EURGBP
1) EURGBP's sharp rejection from its top forms this potential downwards channel that has potential for a short opportunity. (The short bias is due to the strong rejection from the top)
2) 2 Lower highs were identified on the chart with the potential of a 3rd in the making
3) Mixed sentiments pertaining to EUR and GBP strength ensures the lack of clear direction in this pair at the moment
With the combination of the above thoughts, I am comfortable in playing this potential slow churning channel on the short side and will be looking for shorts. In my opinion, trendlines alone do not serve as a comprehensive guide to entry prices and you have to trade at your own discretion using whatever other means that you are comfortable / confident in. Always remember to set SL for your trades and set reasonable TPs.
1) EURGBP's sharp rejection from its top forms this potential downwards channel that has potential for a short opportunity. (The short bias is due to the strong rejection from the top)
2) 2 Lower highs were identified on the chart with the potential of a 3rd in the making
3) Mixed sentiments pertaining to EUR and GBP strength ensures the lack of clear direction in this pair at the moment
With the combination of the above thoughts, I am comfortable in playing this potential slow churning channel on the short side and will be looking for shorts. In my opinion, trendlines alone do not serve as a comprehensive guide to entry prices and you have to trade at your own discretion using whatever other means that you are comfortable / confident in. Always remember to set SL for your trades and set reasonable TPs.