Dear Daily Price Action Setup Traders,
The price action setup from yesterday is still working its way out. I don’t see a reason to cover existing shorts yet. The price is just testing the 0.7750 level. In order to improve our trading, we should be more persistent and just keep on waiting until we are either proven wrong or we score a big homerun.
Today’s daily price action setup is coming from another pair. I have been following the daily price action of EUR/GBP and have found that there were some bullish rejections on the small scales. On the daily time frame, there is a bearish engulfing pattern, which engulfs almost two days of trading activity. We are in a major downtrend and our next support level is at 0.7200. This means that there is still place for more sellers to push the price down. I will be looking to enter in a short day if the intraday charts are confirming my initial view. The entry parameters for a short position are as follows:
Short entry at 0.7500. The stop should be placed just above 0.7600. The first target is supposed to be at 0.7200. Then it all comes down to how price would react to those levels.