The EURGBP has successfully breached its 17-week old bearish FVG. Latest swing high is formed but bearish engulfing threatens a correction.

To start today’s Finlogix analyses, I am updating a new one for the EURGBP cross pair.

After holding for 6 hours only, yesterday’s short trade has exited quickly in a loss:

https://www.finlogix.com/analysis/20240422/eurgbp-intraday-analysis-and-trading-plan-for-april-22-2024

This lands my loss this year. A 1-1 win-loss record overall.

There are 4 European and 2 British major impact data releases this afternoon. All Flash Manufacturing and Services PMIs.

Expect the markets to be in moderate to heavy volatility.

Re-assessing EURGBP’s high timeframe candles:

Yearly Candle: Last check is a Red Hammer now a Red Long Lower Shadow

Monthly Candle: Still a Green Body since last check but with almost Equal Head and Tail Wicks

Weekly Candle: Still a Green Shaven Bottom since last check but with a Longer Head Wick

Daily Candle: Yesterday close is a Green Shaven Bottom current is Developing a Green Doji

Yesterday’s rally has printed a new 15-week high and breached EURGBP’s 17-week old FVG but a pullback has occurred.

My call yesterday for a potential weekly double top pattern has been invalidated.

The cross pair is expecting to re-test previous day’s high but in the 4H view, I have spotted bearish engulfing candles through the latest swing high.

This pattern can limit EURGBP’s intraday upside potential that can lead to a minor to moderate price correction.

So my minimal stop loss inside the 17-week FVG has been caught in yesterday’s rally.

However, with the presence of the bearish engulfing candle, I maintain my selling instance for EURGBP.

If proven that the EURGBP has reached its maximum high this week, then the current narrow consolidation range can further print more bearish candles in the 4H chart.

For now, the cross pair is still sitting in shortable premium areas.

This time, I’m aiming for a 50-60pip move down with the following new sell orders:

Entering again through the current narrow consolidation range with a minimal stop loss and a handsome take profit setup.

Hoping that the 17-week old FVG is still a strong supply area to start a correction for EURGBP.

Let’s see how this trade plan goes and good luck!

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

EURGBP Intraday Analysis and Trading Plan For April 23, 2024

Apr 23 2024

1