Last week I discussed the reversal potential for EURGBP.
It’s the same concept I wrote about on January 31st.
I also included EURGBP in Sunday’s forecast video, so be sure to watch it if you haven’t already.
So far this week, buyers aren’t backing down from that 0.8385 resistance level.
We saw the same thing occur on Friday despite the long upper wick of last Thursday’s session.
Constant pressure on any level often signals an imminent break.
In the case of EURGBP, that means a break higher.
Of course, there are no guarantees in this business.
And it’s still going to take a daily close above that 0.8385 level to expose the confluence of resistance at 0.8460.
I use New York close Forex charts so that the “daily close” refers to the 5 pm EST close.
Go here to get access to the same charts I use.
Again, watch Sunday’s video for all of the details.
In my opinion, traders looking for a more conservative entry could wait for a daily close above that 0.8460 confluence of resistance.
A close above 0.8460 would open the door to the range top at 0.8590.
Notice how 0.8590 has been intact as resistance since November 12th.
That’s the level buyers need to clear to open the door to higher levels like 0.8680 and 0.8800.
For now, though, it all comes down to that 0.8385 level followed by the 0.8460 confluence of resistance.
The event calendar for the week ahead looks relatively light, but that doesn’t mean we won’t see movement.
Just remember to use the daily close at 5 pm EST to make your decisions here as the intraday time frames haven’t respected 0.8385 recently.
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