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EURGBP Price Action Hints at a Move Higher

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EURGBP bulls made a strong statement today as they closed the pair at the key .7370 area for the third straight day.

In my weekend commentary for EURGBP I stated, “On the sidelines until the pair is able to consolidate and build a stronger foundation for a move higher”. The past two days appear to have filled that void nicely.

This setup starts with Friday’s 80 pip rally that put the pair above the .7370 key level. This area had previously acted as support in mid February and more recently rejected price on two separate occasions between March and April.

The first 24 hours of this week respected this level yet again, forming a small inside bar on Monday. Just when it looked as though the bears would take control during Tuesday’s session, the bulls stepped up and pushed the market back to the key support area.

The combined price action of the last three days hints at a move higher on the back of an inside bar pin bar combination. Resistance levels to keep an eye on from here include .7485, .7592 and .7690.

Note: Thursday is UK’s election so expect increased volatility across all GBP pairs.

Summary: Opportunity to buy EURGBP based on the inside bar pin bar combination that formed between Friday and Tuesday. Key resistance comes in at .7485, .7592 and .7690.

EURGBP inside bar pin bar combination on the daily time frame

Leave a Comment:

5 comments
Boris Kapustin says

Got sort of confused, in your lesson on inside bar pin bar combination, the pattern is explained rather to sugest reversal than continuation although in case above, you recommend to consider it as a confrontational one since it has formed just above the key resistance.

Reply
    Justin Bennett says

    Hi Boris,

    It can serve as either a reversal pattern or a continuation pattern – the dynamics are the same. However it usually occurs as a reversal pattern which is why I wrote the lesson that way.

    Cheers,

    Justin

    Reply
Derrick Tan says

Should wwe take into consideration that UK election is on 7th which might caused more volality ?

Reply
    Justin Bennett says

    Hi Derrick,

    Absolutely, which is why I included it in the commentary. 🙂

    “Note: Thursday is UK’s election so expect increased volatility across all GBP pairs.”

    Cheers,

    Justin

    Reply
      Derrick Tan says

      Thank you.

      Reply
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