EUR/GBP - making its mind up this week? - short term bullish
EUR/GBP has seen some choppy movement over the past couple of weeks, with price seemingly breaking to the upside and then reversing to the downside.
Taking a step back, on the weekly time frame price action still looks quite bullish, with an ascending trend zone stemming from the lows of 2015.
On the daily time frame, it could be argued that price is currently posting a lower high, with respect to the high that was posted in March. However, price also seems to be respecting a new ascending daily trend line, which has recently formed a confluence with both the strong support at 0.9000 and the 50 DAY EMA. We therefore remain bullish on this currency pair in the short term and are expecting a retest of the highs at 0.91349.
Taking a step back, on the weekly time frame price action still looks quite bullish, with an ascending trend zone stemming from the lows of 2015.
On the daily time frame, it could be argued that price is currently posting a lower high, with respect to the high that was posted in March. However, price also seems to be respecting a new ascending daily trend line, which has recently formed a confluence with both the strong support at 0.9000 and the 50 DAY EMA. We therefore remain bullish on this currency pair in the short term and are expecting a retest of the highs at 0.91349.