Forex Trading Library

EURGBP – Higher lows highlight a bullish bias

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Monthly: Since posting large nett losses in September 2017 (-395 pips) the cross has moved sideways. Price action in March (2018) has seen a bearish Outside Month posted and offers a mild downward bias. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending. A large wedge formation offers a long-term bearish bias.

Weekly:  An area to note to the downside is 0.8314 (bespoke support). This is close to the 161.8% extension level of 0.8301 (from 0.9299-0.8682) and the previous swing low 0.8297 (week 17th April 2017). Trend of lower highs is located at 0.8924

Daily: Mixed results for the 51 trading days. However, the fact that we have made higher lows looks to be forming an ascending triangle pattern (bullish). A break of resistance at 0.8850 and the ‘potential’ measured move target is 0.9050

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