EUR/GBP trades a rising channel, consolidating ahead of next leg Long

Euro Fx/British PoundFXCM

Description

⋅ Jan 12, 2016 7:02 AM

EUR/GBP trades a rising channel, the pair is likely to extend consolidation before it resumes uptrend.

A flag pattern is observed on daily charts, RSI strength seen on daily and weekly charts, with scope to run further.

We forecast a 0.7554-0.7475 range for this week. Immediate support is seen at 0.7420 (23.6 % Fib of 0.6981 to 0.7554 rise).

On the topside 0.7554 (Jan 11 high) is immediate resistance ahead of 0.7566 (channel top).

We would buy dips in the pair around 0.7420, SL: 0.7360, TP: 0.7550/60

Comments

balochali235

⋅ Jan 13, 2016 5:08 AM

walker.england

⋅ Jan 12, 2016 1:00 PM

Congratulations! Your chart has been selected to be highlighted as the post of the day. This is a great example of classic channel analysis in an uptrend.