EUR/GBP – Bullish Breakout from the Triangle is Defended

    7 months agoByTomasz Wiśniewski

    FOMC released some pressure of the markets but as we can see in the calendar, that was just a warm up for the “Interest Rates decisions Thursday” that we are experiencing today. One of the banks that was deciding about the monetary policy was BoE. We did not expect any changes and that is what we received from them. First reaction on the market was the GBP being much stronger, which is actually a reaction on the more hawkish approach among MPC members. Even though this short-term drop is against our mid-term view on this instrument and the EURGBP as overall, it does not deny the signal here yet, which now can be actually used with a better (lower) prices.

    EUR/GBP Daily Chart
    EUR/GBP Daily Chart

    We chose the EUR/GBP because the buy signal is relatively still fresh here. Signal was created few days ago but just yesterday it was confirmed to buy the hammer candlestick bouncing with the long tail from the upper line of the symmetric triangle formation. In addition to this, we can see that at the end of February we also managed to defend the long-term up trendline and avoid creation of the Head and Shoulders pattern (inside the triangle). After that bounce, the price went up sharply creating usually nice bullish candles.

    Sentiment is positive and as long as we stay above the 0.865 (which is currently under the pressure) the buy signal is present. The closest resistance is 0.884 but with the bullish breakout from the this triangle we should get much higher than this.


    SymbolLast PriceChangeChart

    Live Quotes

    Top Promotions
    Top Brokers

    FX Empire - the company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as link result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.
    FX Empire may receive compensation from the companies featured on the network.

    All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. FX Empire bears no responsibility for any trading losses you might incur as link result of using any data within the FX Empire.