EURGBP Daily TF Forecast ✍️📈👀

Introduction

The EUR/GBP pair is currently in a corrective phase within a broader bullish structure. The chart highlights a key area of interest, marked as “FVG” (Fair Value Gap), where a potential retracement could occur before resuming the upward momentum.

Key elements on the chart:

1. Market Structure Shift (MSS): The chart shows a bullish market structure break, signaling a potential trend change.
2. Fair Value Gap (FVG): This zone represents a probable area where price could retrace for liquidity before continuing higher.
3. Bullish Projection: The expected path suggests a retracement to the FVG zone followed by a rally towards higher levels.

Trade Setup Idea

1. Entry:
   • Wait for a retracement into the marked FVG zone, around 0.83200-0.83400.
   • Look for bullish confirmation signals like candlestick patterns (e.g., pin bars or engulfing candles) or indicators aligning with upward momentum.
2. Stop Loss:
   • Place a stop-loss just below the FVG zone, around 0.82800, to limit risk if the price invalidates the setup.
3. Take Profit:
   • Aim for the first target at 0.84200 (previous structure high).
   • Extend profits towards 0.85000-0.85400, aligning with the projected upward trajectory.
4. Risk Management:
   • Use a risk-to-reward ratio of at least 1:3 to ensure favorable trade conditions.
   • Monitor price action closely as it approaches the FVG and resistance zones.

Additional Notes

• The bullish sentiment aligns with the current momentum shift; however, patience for a retracement is crucial to capture the best entry.
• Be cautious of news events or unexpected volatility that could influence the EUR or GBP.