EUR/GBP has been cruising above a rising trend line since August and is sitting right on this support level!
Will it continue to hold?
Or will it fold and set off a long-term reversal?
EUR/GBP: 4-hour
EUR/GBP 4-hour Forex Chart by TradingView
EUR/GBP has been trending higher for roughly four months already, lifted mostly by neutral-to-hawkish European Central Bank (ECB) commentary while the Bank of England (BOE) leans dovish every now and then.
Can December BOE easing hopes continue to keep the pair above this area of interest?
Price has pulled back to the 61.8% Fibonacci retracement level, which coincides with the trend line, former resistance, and S1 (.8730) that could be enough attract more buyers.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the bitcoin, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
If so, look out for a continuation of the climb back to the swing high near R2 (.8850) and a minor psychological mark or at least until the near-term upside targets at the pivot point (.8780) then R1 (.8810).
Be sure to keep your eyes peeled for long red candlesticks closing below the area of interest, as a break below the confluence of technical levels could bring enough downside momentum for a move to S2 (.8700) then S3 (.8660).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.