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EURGBP False Break Could Offer Buying Opportunity

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The EURGBP hasn’t done much in the last few weeks.

At least in terms of quality swing trading opportunities.

However, last week’s break below trend line support and subsequent close back above it looks interesting.

EURGBP false break on the daily chart
EURGBP daily time frame

Notice how EURGBP closed below the trend line from the year-to-date low on July 7th.

But sellers didn’t remain in control for long.

EURGBP has erased everything that was lost with this week’s rally.

Furthermore, the pair has closed back above the trend line in question.

And if we extend a trend line from the year-to-date high, we get a multi-month wedge pattern.

That recent false break below support illustrates a renewed strength that could take EURGBP higher in the coming days.

However, bulls need to get past 0.9110 first.

That’s the top of the wedge pattern below.

I think that 0.9150 could be a challenge for buyers too, but if that 0.9110/50 area breaks on a daily closing basis, a run at 0.9300 could be next.

For any of this to work, though, EURGBP needs to stay above 0.9050 on a daily closing basis.

Want to watch the EURGBP video I just released in the member’s area?

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EURGBP support and resistance on the daily chart
EURGBP daily time frame

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6 comments
Justin Bennett says

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Kingsley says

It will be interesting to see how this turns out. I will be watching to see how it plays out.
Thanks for the updates

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Ameet Prema says

Hi Justin
Thank you for sharing you trading wisdom. Looks like some explosive things are about to happen on quite a few charts. The second half of this year is going to be very interesting.
Always stay as awesome as you are.

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Paul says

Thanks for sharing Justin. From Weekly chart, it looks like 0.91055 is a STRONG Resistance for 11Years now and we notice how price bounce of that price this week. Whats your take?

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Olusegun Isaac says

RE:EURGBP
Dear Justin
This time i dont agree with your analysis sir.From Wave perspective the pullback is Wave 2.It very likely that there will be bounce at 61.8% fib retracement for downward continuation of Wave 3.However,if EURGBP attain new high then i may have to go back to draw board to re-assess my wave count.Today or on Monday next week i am expecting the re-break of the trendline in order to SELL.Thank you sir for all good works.Keep it up we are enjoying and appreciating your very good analysis

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arabakullanicilari.com says

I’m impressed, I must say. Seldom do I come across a blog that’s equally educative and
entertaining, and without a doubt, you’ve hit the nail on the head.
The problem is something that not enough people are
speaking intelligently about. Now i’m very happy I stumbled across this during my hunt for something relating to this.

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