Get 40% Off
to Daily Price Action.
Ends October 31st!
A few days ago, I wrote about EURGBP.
The pair has been trending lower within this descending channel since it topped out earlier this year.
If you watched Tuesday’s video, you know I was waiting for a break above channel resistance near 0.8920 or bearish price action from the same area.
Notice how there is also a short-term ascending trend line that extends from the September low.
A break below that would have indicated the next leg lower.
But instead, EURGBP is in the process of breaking out above descending channel resistance.
Get Instant Access to the Same "New York Close" Forex Charts Used by Justin Bennett!
The pair is also testing the 0.8920 horizontal level as I type this.
A close above 0.8920 today would expose higher levels next week, including 0.9015 and perhaps 0.9090.
Notice too how EURGBP has broken above channel resistance on the 4-hour chart.
I mentioned how the pair has respected this pattern on a 4-hour closing basis in Tuesday’s video post.
Just keep in mind that this could be a false (intraday) break.
We have to respect the potential for false moves, especially from a currency as volatile as the pound.
A daily and weekly close back below the channel top would form a bearish pin bar and could signal a leg lower next week.
Regardless, I won’t be trading EURGBP until next week.
I want to see where the daily and weekly time frames close to help confirm or negate the breakout.
I also don’t want to take a new position before the weekend in case we see the pair gap on Monday.