When price approaches a level of support or resistance that has not been broken in years,
we must take note because a huge trend usually follows a break of such levels.
If we take a look at the consolidation zone for the EURGBP, it began from the October 2016
high at 0.9225. A low was then formed in April 2017 at 0.8297.
Since then, price has mainly been trading within this price zone but it has spiked above and
below the high and low several times since then.
The last time the low was tagged by price was in February 2020 and price is making its way
to the low once again.
Unless a major decline happens today, being the last trading day for January, the breakdown,
if there is any, may happen in February.
We are not interested in the first breakdown of support as this may be a fake breakout.
We would need to see a pullback to resistance then another breakdown below the consolidation zone.
A pattern of lower lows and lower highs will confirm a bearish trend is in play.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
we must take note because a huge trend usually follows a break of such levels.
If we take a look at the consolidation zone for the EURGBP, it began from the October 2016
high at 0.9225. A low was then formed in April 2017 at 0.8297.
Since then, price has mainly been trading within this price zone but it has spiked above and
below the high and low several times since then.
The last time the low was tagged by price was in February 2020 and price is making its way
to the low once again.
Unless a major decline happens today, being the last trading day for January, the breakdown,
if there is any, may happen in February.
We are not interested in the first breakdown of support as this may be a fake breakout.
We would need to see a pullback to resistance then another breakdown below the consolidation zone.
A pattern of lower lows and lower highs will confirm a bearish trend is in play.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
