EUR/GBP: why not to fight the trend

Last week’s bearish engulfing line was a perfect example why in trading we mustn’t fight the underlying trend. The signal itself was a strong one though. A wide range body fully engulfing the prior bullish bar at the 61.8% fibo level of the previous downleg and a confluence with a long legged doji in May which reversed a corrective upmove. However the trend still had strength to reach a new high. One could have give it a try but signal bar’s range was nearly 100 pips which would have put the initial stop just too far for my taste.
I know that “hindsight is an exact science” and still we have to trade at the “hard right edge” but this chart does provide me a good lesson to learn.

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