EURGBP forecast Analysis and Trade Setup 23rd Jan, 2014

Daily Chart

• We have broke major Support with a big Bearish day candle yesterday
• Clearly still in a downtrend
• Currently found expected support at the 127.2 extension / 161.8 extension
• We expect further push down slightly before a counter trend trade where a stronger support at the confluence levels of (as highlighted in blue box)
• Monthly PIVOT S2 
• 61.8% retrace from a big uptrend on a daily
• 200 fib ext of the most recent reverse retrace of the down trend (sorry i don't know the correct word for this)
• 141.4% fib ext of oct 29 to dec 02 down swing (fib level not shown on graph)
• 161.8 fib ext (old level, which was previous s/r

4hr Chart

• Clear down trend
• The 4 hour chart is a zoomed in scenario of my trade setup where we can identify smaller swings and calculate more accurately the fib ext levels for entry.

Hourly Chart

• Clear Down Trend
• On the hourly chart we are looking for a retrace of our broken support which now is resistance
• We can enter at the 161.8 fib ext and have stops above 200 fib ext - this is a trend trade

Outlook Trade opportunity

Risk Level LOW

Tips -