EUR/GBP Reversal Prepares for Bullish Break Above 0.9050

The EUR/GBP is building a range above the 21 ema zone (green box) after breaking above the resistance trend lines (dotted purple). The EUR/GBP could be ready for a strong bullish breakout.

Price Charts and Technical Analysis

The EUR/GBP needs to break above the resistance of the previous wave 4. A bullish breakout would confirm the trend and momentum change from down to up. Bullish price action could take place within a wave 3 (purple). The first target is the Wizz 6 level and the previous top. But the start of a wave 3 could push it for a new high and beyond. A bull flag pattern would help confirm the uptrend view (green check).

The EUR/GBP could also break south but the previous bottom is likely to hold. An inverted head and shoulders pattern is likely to act as support for a bullish bounce. Only a break below the bottom invalidates (red x) the current bullish outlook on the EG.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

For a look at all of today’s economic events, check out our economic calendar.