FX.co ★ EUR/GBP
Trader Journals:::
EUR/GBP
Currency pair EURGBP - weekly chart. On this larger timeframe you can clearly see how in 2025 a large reversal pattern formed — an ascending wedge — plus a bearish divergence on the MACD indicator. Since the timeframe is higher, the signals are accordingly very strong. Back when the price was at the 2025 high I already assumed the start of a decline. And indeed they began to gradually push it down. As you can see, for many weeks the price slowly fell, and in the end the main target was reached. Around the support level 0.8627 there was an increased probability of a bounce upward. Not only because it was a level, but also because at that time on the lower daily chart there was a bullish divergence on the MACD indicator. It worked out — the bounce upward occurred. It worked out quite high, more than half of the decline wave. Then a new decline started which was again stopped by the strong support level 0.8627. They gave a rise and earlier you can see a bearish pattern — a head and shoulders, a bit crooked, but it doesn’t have to be perfectly neat. And then this year another bearish pattern formed — a descending triangle whose base level is exactly 0.8627. Everything indicated that the decline would continue, which ultimately happened. The base level of the descending triangle was pushed down and the target was the 161.8 level on the Fibonacci target grid applied to the first wave. And as can now be seen from history, the price reached that level point for point. There, naturally, positions were taken off and it crawled upward; somehow the price rose unevenly and eventually reached the level previously broken at 0.8627, allowing for wick spikes. It took about a couple of months. From there they gave a bounce downward, but no significant development followed, it got stuck again. While the price remains below the level, in my opinion it is more promising to look for short entries on lower timeframes.
