At the closed of last week this market dropped a nice beefy looking bearish rejection candle. The EURGBP daily chart is obviously moving downward, just recently taking out an important support level and now stepping through lower highs.
Myself, and some other War Room Traders have already taken a short position here earlier after a bearish breakout trap and reverse trigger. Big shout out to Vas in the war room for pointing out the signal.
After the setup triggered, the market went into a holding pattern under support and I was questioning whether we were going to see any bearish follow-through. But the bearish picked up the pace again and the EURGBP started moving lower.
Now another bearish rejection candle has formed aligned with the fresh downward movement. The ‘thick bodied’ bearish rejection candle demonstrates higher prices were rejected as price retraced into the mean value. A good sign the downtrend is intact and the market is ready to make it’s next move lower.
Lets see how this one pans out over next weeks trading.