EURGBP Break And Retest Forecast Playing Out
EURGBP has broken above the strong .9000 whole number resistance level and is coming back to retest this level.
Price overall on the daily chart is trading within a large range. We have added a daily chart image at the bottom of this description.
Inside this larger range, price is respecting levels of support and resistance and therefore has been trading within smaller ranges.
Price had tested the .9000 resistance level many times recently, and last week had successfully broken above due to negative GBP data.
On the 4H and below, price has lost bullish momentum and is looking like it will fall back to the resistance turned support for either a retest and continuation or a break back inside the range.
An uptrend could also be forming and the retest zone is in line with the uptrend line, a rejection of both the uptrend line and the S/R zone would add more confluence to a bullish trade.
We want to see price fall back the the .9000 S/R level and rejected this area with a strong bullish engulfing or pin bar on the 1H or 4H charts to confirm continued upside momentum.
Our 3+ reasons to take this trade
-Break and retest of strong whole number S/R level
-Strong bullish rejection candles (engulfing/pinbar) at S/R level
-Rejection of uptrend line
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Price overall on the daily chart is trading within a large range. We have added a daily chart image at the bottom of this description.
Inside this larger range, price is respecting levels of support and resistance and therefore has been trading within smaller ranges.
Price had tested the .9000 resistance level many times recently, and last week had successfully broken above due to negative GBP data.
On the 4H and below, price has lost bullish momentum and is looking like it will fall back to the resistance turned support for either a retest and continuation or a break back inside the range.
An uptrend could also be forming and the retest zone is in line with the uptrend line, a rejection of both the uptrend line and the S/R zone would add more confluence to a bullish trade.
We want to see price fall back the the .9000 S/R level and rejected this area with a strong bullish engulfing or pin bar on the 1H or 4H charts to confirm continued upside momentum.
Our 3+ reasons to take this trade
-Break and retest of strong whole number S/R level
-Strong bullish rejection candles (engulfing/pinbar) at S/R level
-Rejection of uptrend line