EUR/GBP produced a bullish engulfing candle last Friday. With that bullish daily candle, the weekly candle ended up being a bullish Marubozu candle. The H4 chart shows that the price after being bullish has been having a bearish correction. The pair may extend its corrective wave towards the South further to find its support. A Fibonacci level may come into play and works as a level of support. The buyers may find an opportunity to go long in the pair upon getting a bullish reversal candle.
Chart 1 EUR/GBP H4 Chart
The chart shows that the price headed towards the north with good bullish momentum. The chart produced an Evening Star. Since then, the price has been heading towards the South. It may come at the level of 0.88780 and make a reversal. This is the 38.2% Fibonacci level of the last bullish move. Thus, the buyers may wait for the chart to produce a bullish reversal candle to go long in the pair.
Trade Summary
Entry: Buy above 0.89100
Stop Loss: Below 0.88760
Take Profit 1: 0.89565
Take Profit 2: 0.89870
Take Profit 3: 0.90070