Case study – pullback breakout setup

The attached EURUSD 5-minute chart shows a setup for a possible bullish reversal. I don’t like this setup because the breakout is clearly lacking bullish momentum. It rather seems to be a partial retracement in a broadening pattern which is likely to get followed by another leg lower. The upmove after the trendline violation could not breach the resistance marked by the prior swing low. All in all, it is likely to be bear flag with an imminent downside breakout. I would only buy this if the price…
a) would test the prior extreme below 1.3790 and fail to move lower b) would break above the resistance (dotted line) on good momentum


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