EUR/GBP has now been trading in a 28 pip range for 20 hours. When you have a sequence of candles all confined within the range of the initial candle, this candle is called a Master Candle.
In the example the candle marked is not technically a Master Candle as the next candle pushes half a pip higher than the Master but to all intents and purposes we have a Master Candle setup.
What frequently happens when the range of the Master Candle breaks we see a significant move in the direction of the break.
As we are at WR1 resistance and an area of historical resistance m y guess is we'll head lower but W1 200 sma lies at .7935 so we may head briefly there and then head south.
A break of .7935 would be significant and suggest a move to .8200 area.
In the example the candle marked is not technically a Master Candle as the next candle pushes half a pip higher than the Master but to all intents and purposes we have a Master Candle setup.
What frequently happens when the range of the Master Candle breaks we see a significant move in the direction of the break.
As we are at WR1 resistance and an area of historical resistance m y guess is we'll head lower but W1 200 sma lies at .7935 so we may head briefly there and then head south.
A break of .7935 would be significant and suggest a move to .8200 area.