Daily Price Action

EURGBP Targets 0.8590 Following Breakout


On February 19th, I wrote about the reversal potential of EURGBP while above 0.8276.

That figure represents the 2019 low for the pair.

It’s significant because the Fibonacci analysis I did back on January 31st relied on the EURGBP staying above that 2019 low.

The pair recently tested that region but never did punch through 0.8276.

That meant the reversal potential for EURGBP was very much intact.

One thing I pointed out in Sunday’s forecast video was that the more conservative long entry could materialize above 0.8460.

Here’s the EURGBP segment of that video:

That was a confluence of resistance based on a key horizontal level and the top of a short-term descending channel.

I wrote “was” because that 0.8460 area is now support.

Any retest of that 0.8460/70 area will likely attract buyers.

Of course, there’s no guarantee that we will see EURGBP rotate that far south before the next leg higher.

Just keep in mind that the potential for a double bottom relies on a daily close above that 0.8590 resistance level.

A daily close above that would target 0.8680, followed by 0.8800.

As I mentioned in the members-only video several weeks ago, my sights are still set on 0.8800.

That’s especially true while the EURGBP trades above 0.8460.

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

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EURGBP bullish breakout on the daily chart

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Justin Bennett says

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    DANIEL GOR says

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Sifiso says

This is fractional disparity at its best. Had one understood this principle, one would have known that this was coming. I mean these banks do not trade currencies as pairs…they trade them in singularity. Forex traders need to understand how this game is really played. For instance: look at how this quarter has been traded. Open, false move, reverse and then trend. Time and time again we see the big boys taking advantage of naive, misinformed retail traders using their typical market moving pattern.

    Justin Bennett says

    Taking advantage of who? I’ve been buying EURGBP since 0.8312, and still holding. I wrote about a potential bottom on January 31st and again here: https://dailypriceaction.com/setups/eurgbp-reversal-potential-0-8276/

    Not sure who you’re referring to, mate.

      Sifiso says

      Hi Justin! I took that long after I saw the inside bar formation on the dailies. My TP was hit yesterday. The thing is i did not want to hold for too long since that trade was against the trend of this quarter. I am surely willing to buy the europound only Olof it breaks the year to date high. However if that happens I can also pass on that pair and look elsewhere..the audyen, gbpyen, or nzdyen. And also I am eying the platinum futures for a potential long. Apart from that I was just saying that A lot of retail traders traders are burnt exploited by these market makers using one market theme. Was just trying to hint to other traders that there is more to price than what meets the eye.

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