EURGBP Bullish with 1D MA60 holding

The EURGBP pair has been trading exactly as our last analysis projected on May 24:


The Channel Up on the 1D time-frame continues to be dominant after the bearish trend of 2021 broke. Key highlight is that the 1D MA50 (blue trend-line) has been holding since the price broke above on April 22 and today is going for a test. As long as it holds, the price remains bullish short-term towards the 1W MA200 (red trend-line), which is the Resistance as it had a perfect rejection on June 15. A break above it is bullish towards the Higher Highs (top) trend-line of the Channel Up, while a break below the pattern and the 1D MA50 is bearish short-term towards the 1D MA200 (orange trend-line). A 1D candle close below the 1D MA200 (orange trend-line) could restore the bearish trend on the long-term.

It is worth noticing the 1D MACD band squeeze since late May. The last time it happened was in May 2021 and was at the start of the Bearish Megaphone. We can claim that this formation is an accumulation pattern that favors the dominant trend each time.



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