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EURUSD and GBPUSD with Major Buy Signals

By:
Tomasz Wiśniewski
Published: Feb 27, 2019, 12:58 UTC

Yesterday, a major buy signal was triggered on the GBPUSD chart.

Money banknotes of different countries on the table

The positive sentiment comes from the fact, that the price created an inverse head and shoulders pattern. Formation started in July and ended yesterday, with a breakout of the neckline (red). The potential target for this movement is the long-term pink down trendline connecting high between 2014 and 2018. With this kind of setup and the present momentum, chances that we will get there are pretty high.

The next one is the EURUSD, which is moving slowly but surely. Slowly as the momentum is really low and resembles this one from the sideways trend. Surely because even despite that, we are able to make higher highs and lows. Tuesday was important here, as the price broke the upper of the rectangle pattern (yellow), which in theory, brings us a buy signal. Jerome Powell, Fed’s Chairman was a big help here as his testimony was perceived as a dovish one. That obviously helped to weaken the USD. As for the target, we think about the upper line of the descending triangle pattern. That can potentially give us around 50 pips, which maybe is not a lot, but for sure enough for the mid-term traders.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

About the Author

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.

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