EUR/GBP Confluence of Divergence and Rising Wedge

2 min read
Davinwu

Davinwu

Author

Dear Traders,

The EUR/GBP has formed a rising wedge in confluence of a bearish divergence, with historical rejections from 6/8 octave. Bearish divergence happens when price makes a higher high while the oscillator makes a lower high.

POC zone is 0.9000-10 [6/8, D H3]. Should we see a bearish rejection from this zone, targets will be 0.6954 [W L3, 3/8, ATR Projection low, W L4] and 0.88959 [-1/8, Previous Swing Low], eventually reaching 0.8870 W L5 level.

We are looking for bearish candlestick patterns like a dark cloud cover, hanging man, engulfing bar. Deliberation patterns like dojo stars would also justify an entry.

Price should not close higher than 0.9035 [8/8, D H5, ATR Projection High] for this analysis to be valid.

The analysis has been done with the
CAMMACD.MTF template.
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Many green pips,
Davin Wu aka AmbitionFX

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