Identification: EURGBP has been making higher highs, indicating a bullish trend. A trend line was broken briefly, but then back to being respected on a later touch. Previous structure high was broken for more than a week ago, and the pair has been consolidating recently.
Prediction: The market will want to fill new orders by pushing down into previous structure high. It might even go as far as pushing down to the trend line that was previously respected. It should however respect either the fibonacci and previous structure, or trend line and then continue to shoot up.
Decision: If the market goes back to retest previous structure high, which also lines up with a 61.8 retracement from the previous swing high and swing low, then buy the pair. Put a wide stop below the trend line. Profits will be taken before both major 0.768 fibonacci level and 1.272 fibonacci extension.
Prediction: The market will want to fill new orders by pushing down into previous structure high. It might even go as far as pushing down to the trend line that was previously respected. It should however respect either the fibonacci and previous structure, or trend line and then continue to shoot up.
Decision: If the market goes back to retest previous structure high, which also lines up with a 61.8 retracement from the previous swing high and swing low, then buy the pair. Put a wide stop below the trend line. Profits will be taken before both major 0.768 fibonacci level and 1.272 fibonacci extension.