Relevance up to 03:00 UTC–5
EUR/GBP is trading in the green today and is fighting to confirm a further increase in the short term. EUR is quite strong today after the last two session’s indecision, another higher high, a breakout above the 0.8876 level will suggest buying and further increase.
The German Prelim GDP will be released later, the indicator is expected to drop by 2.2%, better than expected data from the Eurozone could support the EUR appreciation in the short term.
EUR/GBP has found strong support at 0.8682 level, it has tested and retested this level, confirming it as a strong downside obstacle. The price action has developed a minor triangle, the price has registered an aggressive breakout from this pattern, it has closed above the median line (ML) of the major descending pitchfork and now is challenging the R1 (0.8848) level.
The price development could be considered also as a Double Bottom after the failure to close below the 0.8682 level, this pattern will be confirmed if the price closes above the 0.8863 static resistance.
- EUR/GBP TRADING TIPS
Buy – EUR/GBP will validate an increase if it makes a valid breakout (close and stabilize) above the 0.8863 level. Another higher high, an increase above 0.8876 will give us a chance to buy this pair with a potential target at R2 (0.8999) level and higher at the inside sliding line (SL) of the major descending pitchfork. An upside breakout is favored after the median line (ML) retest, a strong consolidation above the R1 (0.8848) level and above the 0.8863 could signal a larger increase, even above the sliding line (SL), and above the R3 (0.9088) level, towards the upper median line (UML).
Sell – The price seems strongly bullish in the short term, but EUR/GBP could drop again if it is rejected by the 0.8863 level. The pair is trading within an extended sideways movement, between the 0.8682 and 0.8863 levels, an upside false breakout with great separation or a bearish engulfing will signal another drop towards the 0.8682 support.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Ralph Shedler,
InstaForex Group © 2007-2020
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