EURGBP

The EURGBP pair has formed a potential double bottom reversal pattern on the 1H chart, indicating a possible bullish reversal. The pattern consists of two troughs at approximately the same level, with a neckline connecting the highs between them. Additionally, there is a divergence observed on the Relative Strength Index (RSI), where the second trough has a higher RSI reading compared to the first, suggesting bullish momentum.

To enter this trade, it is advisable to wait for a breakout above the neckline. This breakout confirms the pattern and indicates a potential bullish move. Traders can consider entering a long position once the price closes above the neckline resistance.

Risk management is crucial in trading. it is recommended to set a stop-loss order below the double bottom pattern's lows, which acts as a support level. This helps limit potential losses if the pattern fails. Additionally, traders can consider using a trailing stop to protect profits and adjust it as the trade progresses. It's essential to manage position size appropriately based on account risk and follow proper money management principles.