I want to share with you a trade that I placed this week on the EUR/GBP pair because this was a perfect high probability set-up. I was looking through the various pairs to see if there were any set-ups that satisfied the criteria of my main 4 hour trading system, when I noticed an interesting pattern forming on the EUR/GBP pair.

It was clear that after a big sell-off there was a nice double-bottom forming on this pair. This was enough to get my attention, but I also noticed that after the price fell and formed a second bottom, there was a clear divergence pattern on both the MACD and Smoothed Repulse indicators, as you can see below. In other words the price was heading lower, but both the indicators were failing to make new lows. On top of that the price was getting close to the current Supertrend level but was struggling to break through it.

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