The EUR/GBP bullish ‘Inverted H&S’ move looks to be continuing but has stalled at the S/R level of 0.77. I have previously mentioned that this is the next level to watch on this EUR/GBP journey and it remains the case.
EUR/GBP monthly: the last two months have resulted in huge movement for this pair but price is currently struggling at the S/R level of 0.77. This region can be seen on the monthly chart:
EUR/GBP weekly: a close and hold above 0.77 would support a continuation move to 0.80. However, any weakness here could see another test of the 0.75 breakout region and that wouldn’t surprise me either! I’ll be watching for any new 4hr chart-based TC signal here to help guide me:
EUR/GBP daily: yesterday’s candle closed with a bit of a bullish-reversal ‘Shooting Star’ look to it and so I will keep an open mind about any possible pullback here. This has been a lengthy bullish run to date and, so, some mean reversion would not surprise me at all:
EUR/GBP 4hr: all that said though and this latest pause could just be some consolidation in ‘Bull Flag’ style and so that’s why I will watch for a new 4hr TC signal to help guide me:
Summary: Longer term I’m looking for a move here up to the 0.80 level. Traders need to watch for any close and hold above the 0.77 S/R level to support this move. However, a pullback down to test the 0.75 level could evolve here first as this was the ‘neck line breakout region.
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