At the moment EURGBP is currently pushing lower from the December 30 2022 high. Looking at the 4 hour chart below we should expect for the pair to continue pushing lower towards the demand zone (blue), but before the move lower watch for selling opportunities in the supply zone (purple) for the pair to find more possible sellers and grab liquidity. Waiting to sell in the supply zone (purple) 0.8827-0.8861 area with stops above 0.8870 and targeting the demand zone (blue) 0.8743-0.8711 area will offer a good risk to reward trade setup.Traders could also switch to the smaller time frames to refine the entry with tighter stops but making sure the sell entry remains in the supply zone (purple) of the 4 hour chart. Switching down to the smaller time frames will give the trade a better risk to reward ratio.
Other possible trade setups will be if price pushes lower to the demand zone (blue) then watch for possible buying opportunities against 0.8711 stops or if price pushes higher to the supply zone (red) then watch possible selling opportunities against 0.8980 stops. Only time will tell what EURGBP will do but now you know the possible zones to look for trade setups.
EURGBP 4 Hour Chart January 9 2023
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup.
We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Cryptos, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Hour Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days !!! Just click here –> 14 day trial
Back
