The primary trend of EUR/GBP is bullish on charts and price is trading above the trend line in its 4 hourly chart. In 4 hourly chart the price is sustaining above 200 day SMA and taking support of 50 day SMA indicating uptrend of the pair. It is having an important resistance at the level of 0.7665 and support at the level of 0.7525. If it breaks its resistance level on the upside and sustains above it then we can expect it to show further bullish movement in the pair.
INDICATORS MACD is sustaining in its positive territory indicating the bullish trend in the pair. RSI is sustaining in its buying zone indicating the upcoming bullish trend in the pair.
STRATEGY EUR/GBP is looking bullish on charts for next few trading session. One can go for buy on lower level strategy for this pair for intra-day to mid-term positions in it.
Agreed! On the weekly we see that 0.775 is a very strong level that is now a resistance after being a historical support.
When zooming in to daily, we see another move down at 61,8% retracement of the initial bounce off the 0.775 level. That move down did fail to create a new low which adds to directional uncertainty. I think there were two scenarios possible on the Daily. Either we were going up to create a double top at 0.775, or we were in a descending triangle with 0.752 as horizontal base. The 4-hourly chart you post here suggests the descending triangle is no longer valid and we'll be going up to retest 0.775.
piponomics
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Great chart, I think for sure you are right with the retest! Have you entered?
NielsG
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No I haven't yet.
I'm watching the hourly chart for a pullback and readjusting my fibs with every new high.
I wouldn't be suprised to see the pullback starting only once the 0.775 level lines up with either the 27.2 or the 61.8 extension, so first there will be some new highs on the hourly.
When zooming in to daily, we see another move down at 61,8% retracement of the initial bounce off the 0.775 level. That move down did fail to create a new low which adds to directional uncertainty. I think there were two scenarios possible on the Daily. Either we were going up to create a double top at 0.775, or we were in a descending triangle with 0.752 as horizontal base. The 4-hourly chart you post here suggests the descending triangle is no longer valid and we'll be going up to retest 0.775.