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The EURGBP is holding above a key level I wrote about on Monday.
I also mentioned how EURGBP could be bottoming last Friday.
The euro cross has been a bit stubborn, though.
We haven’t seen much follow-through from buyers following Monday’s rally of nearly 100 pips.
That said, the EURGBP is holding above 0.8450 on a daily closing basis.
This is the level I pointed out on Monday, where I stated that a retest of it as new support could trigger the next move higher.
But a word of caution here.
Wednesday’s candle is not a pin bar, nor is it all that bullish, in my opinion.
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Things for the EURGBP looked relatively bullish earlier in Wednesday’s session, but buyers backed off into the close.
So will EURGBP move higher from here?
That is anyone’s guess.
As I always say, there are no guarantees in this business.
Monday’s rally may be nothing more than a bull trap within the broader downtrend.
However, I think traders also need to respect the bullish potential while above 0.8450, especially given the reasons I wrote about last Friday.
If you want to be conservative, though, it may be best to wait for a daily close above 0.8590 resistance.
It’s going to take a close above that level to garner the attention of would-be buyers, in my opinion.
As long as 0.8590 is intact as resistance, EURGBP bulls may struggle.
A move above 0.8590 would target 0.8680 and perhaps 0.8800.
Alternatively, a daily close below 0.8450 would signal more weakness, perhaps below recent lows at 0.8385.