This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation EUR is currently trading with an increasing bearish momentum. After a rejection within the resistance zone 1.1465-1.1401, EUR pulled to the lower side with a big red candle, last week however it tried to rise but could not reach the zone 1.1465-1.1401. I still expect more of
Technical observation As I stated on the Monday’s analysis, GBP has been rallying with an increasing bearish bias and may extend lower, this downward movement is expected since the price did not penetrate above the key level 1.2578 it had previously broken below while retracing but was rejected an
Technical observation On the 4-hour chart above, price is trading below a resistance zone 108.68-108.58 with an increasing bullish bias. I expect a rise to 108.68-108.58 followed by a loss of this bullish rally within it for possible downwards movement of price towards the level 107.78. My advice,