May is another strong profit taking month as EURGBP bulls struggle to sustain gains.

First Finlogix analysis today goes to the EURGBP cross pair.

My May 8 long trade plan has exited in a loss:

https://www.finlogix.com/analysis/20240508/eurgbp-intraday-analysis-and-trading-plan-for-may-8-2024

An updated record of 3 wins and 2 losses.

There are 4 European economic reports due tomorrow while 5 in the United Kingdom starting on Wednesday.

Re-assessing EURGBP’s high timeframe candles:

Yearly Candle: Last check is a Red Long Lower Shadow now a Red Body with a Longer Tail Wick

Monthly Candle: Last check is a Green Body now a Green Long Upper Shadow

Weekly Candle: Previous close is a Red Body with a Longer Head Wick current is a Red Body with a Longer Head Wick

Daily Candle: Previous close is a Red Long Upper Shadow current is a Red Doji

The 19-week bearish FVG (formerly 17-week) has merely been touched on May 9 and bulls fall off short.

This very FVG has solidified the triple rejection last in April that caused a continued down trend for EURGBP.

Ugly monthly view as profit taking persists.

The higher low trendline shown above is threatened for a breakdown targeting February and March’s double bottom.

As a result of another strong monthly profit taking, my previous long trade plan can’t help but trigger its protective stop loss.

According to the current 4H structure, selling is more pronounced but to be safe I will wait for new dips first.

I anticipate a breakdown on the HL TL targeting lower towards the February and March’s lows.

I will enter 78.60 fib retracement which is a good discount array which is based from February to April swing low to high move.

Will put the stop loss just beneath the double monthly bottom’s low while taking profit through a 2.50 RRR reversal bounce off trade.

I’m happy to open a new long position if my new long plan triggers its stop loss.

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

Copy trading and trading directly involve risks.