First things first, retail sentiment for Pound is bearish amid Brexit deadline on 15 Oct., so that's what we start with before we hop in the analysis.
EURGBP bottomed at mid 0.88 in the beginning of September and started going up aggressively when UK PM announce the Brexit limit. The bullish run ended at near 0.93 and corrected till the 61.8% following a flag pattern.
Lately, we see that price is slowly growing and gathering momentum to break the flag pattern and continue the bullish movement.
My personal target is 0.93 with stop loss below recent 4H lows. According to Elliott Wave theory, price could extend to 161.8% but for me it's very long term I wouldn't see to trade above 0.93.
Thanks for reading!
Comment
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Price struggling to break our level. Trade setup still valid... Patience!