EURGBP forecast Analysis and Trade Setup 23rd Jan, 2014
Daily Chart
- We have broke major Support with a big Bearish day candle yesterday
- Clearly still in a downtrend
- Currently found expected support at the 127.2 extension / 161.8 extension
- We expect further push down slightly before a counter trend trade where a stronger support at the confluence levels of (as highlighted in blue box)
- Monthly PIVOT S2
- 61.8% retrace from a big uptrend on a daily
- 200 fib ext of the most recent reverse retrace of the down trend (sorry i don't know the correct word for this)
- 141.4% fib ext of oct 29 to dec 02 down swing (fib level not shown on graph)
- 161.8 fib ext (old level, which was previous s/r
4hr Chart
- Clear down trend
- The 4 hour chart is a zoomed in scenario of my trade setup where we can identify smaller swings and calculate more accurately the fib ext levels for entry.
Hourly Chart
- Clear Down Trend
- On the hourly chart we are looking for a retrace of our broken support which now is resistance
- We can enter at the 161.8 fib ext and have stops above 200 fib ext - this is a trend trade
Outlook Trade opportunity
Two opportunity1 is Trend Trade - see hourly chart
2nd trade is counter - see 4hr / daily chart
