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.
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.