EURGBP - Bearish Continuation Setup (4H -> 1H)
📉 EURGBP – Bearish Continuation Setup (4H → 1H)
Bias: Bearish
Pair: EURGBP
Timeframes: 4H for structure, 1H for execution
On the 4H timeframe, EURGBP continues to trade within a clear bearish market structure, printing lower highs and lower lows. The recent bullish move appears corrective and has retraced into a premium Fibonacci zone (0.618–0.786), which aligns with prior structure and a descending trendline, reinforcing this area as strong resistance.
On the 1H timeframe, price shows multiple rejections from the trendline and supply zone around 0.8695–0.8720. Several 1H Fair Value Gaps (FVGs) remain overhead, acting as resistance. Momentum is weakening, and RSI shows bearish divergence, suggesting buyers are losing strength at these highs.
📌 Trade Idea
Entry: Short from 0.8695–0.8720 resistance zone
Stop Loss: Above recent high / trendline (above ~0.8725–0.873
Targets:
TP1: 0.8680 (range low / liquidity)
TP2: 0.8650 (imbalance / prior demand)
TP3: 0.8610–0.8600 (HTF support)
🧠 Confluence
✔ 4H bearish structure
✔ Fibonacci retracement into premium
✔ Trendline resistance
✔ 1H FVGs overhead
✔ RSI bearish divergence
This setup aligns with the higher-timeframe trend and offers favorable risk-to-reward as price rejects from premium levels.
❌ Invalidation: A sustained close above 0.8730 would invalidate the bearish bias.