Home Daily Analysis Charts / Trade Ideas EURGBP Drawing an Ending Structure

EURGBP Drawing an Ending Structure


The EURGBP cross in the hourly chart shows an Ending Diagonal pattern which suggests declines ahead. As the theory says, a bearish divergence indicates not only the exhaustion of the previous movement. It’s also indicative of the presence of a wave 3 and a wave 5.

Our short-term scenario

The breakdown and close below 0.9205 activate our bearish scenario. Profit targets are 0.9155 and 0.9125; the invalidation level is at 0.92536.

You can read more about this and other EW trading setups in our post “Understanding Corrective Waves – Part II – Triangles and Trading Setups.”


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