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On Friday, I wrote about the potential of a EURGBP bottom.
The way the pair rallied in mid-December combined with the broken descending channel hinted at strength.
I also explained how I used the Fibonacci tool to identify a potential bottom.
See Friday’s post for all the details.
At the time of that writing, the EURGBP was trading just above the 0.8400 handle.
Fast forward to today, and you can see how the pair is well off of that level.
Monday’s gap up suggested strength, and buyers didn’t disappoint.
I managed to catch Friday’s bottom, an entry I announced in the Skype group I run for higher net worth traders.
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But I have no intention of exiting my EURGBP long any time soon.
At least that’s the case as long as the pair stays above 0.8450.
That level is once again support following Monday’s rally.
Notice too that the EURGBP may be carving a higher low after putting in a multi-year low in December.
If that’s the case, I have a good idea as to where the pair may be going.
I’ll cover that in the coming days, but for now, it seems all eyes are on the next key resistance at 0.8590.
That’s the level I pointed out on Friday as one that buyers need to clear to expose higher levels.
Above 0.8590, we have 0.8680 followed by 0.8800.
Immediate support comes in at 0.8450.
However, considering how aggressive Monday’s rally was, we may not see the EURGBP dip much below 0.8485.
As always, time will tell.