Technical outlook and chart setups:
Looking into the 4H chart view depicted here, finally the single currency pair has rallied through 1.4411 level, marked as Gartley or the point of convergence; in our earlier discussions. Believe it or not, Gartleys, if projected in the right manner, produce extremely beneficial trading results. An engulfing bearish signal, is observed at the moment. To elaborate the trend structure, 1.4530 to 1.4 was towards the downtrend, 1.4 to 1.4411 rally is the counter trend. Most probable occurrence should now be towards the larger trend and extend below 1.4 mark. Resistance is above 1.45 level and till the time it remains in place, it is recommended to remain short. Intermediary support levels and trendlines depicted here should break down eventually. Once prices are below the 1.4100 mark, the downtrend would accelerate further. Bottom line: Remain short.
Trading recommendations:
Remain short, add further positions now (1.44), stop is above 1.4550, and target is below 1.4.
Good Luck!
