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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
The EURGBP is a pair I don’t discuss often.
It tends to be quite choppy, especially at turning points. Look no further than the hectic price action throughout March.
However, this latest rally has caught my attention.
Not because I want to join the trend, but because of the lack of a pullback along the way.
Since May 6th, EURGBP has experienced just five down days out of twenty three sessions total.
Buyers even went on a 13 session win streak between the 6th and 23rd of May.
It’s been an impressive run, for sure.
But the lack of a pullback means there are a lot of longs that may panic out at the first sign of danger.
What could cause that?
In my opinion, if 0.8840 support fails on a daily closing basis, this EURGBP uptrend could unravel at a fast clip.
That said, the market is in an uptrend until it isn’t.
So until we see buyers begin to slip and surrender sub 0.8840 prices, the EURGBP uptrend is still alive and well.
The next resistance level here comes in at 0.8925.
Based on the price action in the last few months of 2018 that 0.8925 area is going to be a significant hurdle for buyers.
On the other hand, if the pair closes below 0.8840, we could see EURGBP unwind toward the 0.8680 region.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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