Good morning traders,
Continuing with the EUR/GBP short side narrative that we have been following, I wanted to highlight the textbook price action that we saw during yesterday’s trading session.
But first up, I have to include the higher time frame, EUR/GBP daily chart for context. It’s almost the same as yesterday’s blog, so if you’ve been following along or clicked the link above, you can skip right ahead!
The daily resistance zone that I’ve marked is pretty self explanatory. With some of the wicks going through it like that, you could probably draw it a little wider to the upside if you please.
But as it’s a higher time frame level that we are using to gauge direction rather than entries, it doesn’t really matter. The level has held and that’s all that matters when it comes to day trading around these types of higher time frame zones.
Now let’s get to the juicy part for the traders, with a look at an intraday, EUR/GBP 15 minute chart.
After the higher time frame resistance zone holds, it becomes all about looking for shorts on the intraday charts. Any short term support that can be retested as possible resistance gives a nice entry that keeps you in tune with the ebbs and flows of the market.
Best of probabilities to you!
Dane Williams – Vantage FX
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Source: Vantage FX Blog