This pair managed to break above its downtrend line, but unfortunately was unable to break above the price swing high.
Upon hitting that resistance, price did manage to break above for a few bars, but eventually gave up and formed a bearish H&S pattern and headed south instead.
After the neckline of the H&S broke down, which was a major bearish sign, the odds...
EUR/GBP bounced off from the 0.88632 level (23.6% fibonacci level on 4h chart). Probably heading to resistance at 0.89118 might bounce off from that zone or could continue moving up till the next sell off zone on the daily chart at 0.895 to 0.902. The stoch will probably head further to the overbought zone. We are probably in the 5th elliot wave going up.
This is my last idea in #EURGBP after #BREXIT.
We need to wait a little correction by the "bears", and after we can enter in this strategy.
RISK REWARD RATIO: 3.63
Entering Channel: 0.80200 -> 0.8300
Take Profit 1:0.8400
Take Profit 2: 0.8500
Take Profit 3:0.8600
Stop Loss: 07860
At the moment the EUR/GBP favours a slight bearish basis. This is based on its prolonged period of sideward movement and the price heading towards the previous higher high from the last sideward movement (box3).
Since mid February the EUR/GBP has had clear support and resistance channels that have been respected. If one of these lines break then expect a bullish...