EURGBP Two-Year Wedge Pattern Emerges

·    January 4, 2019

·      January 4, 2019

·    January 4, 2019

EURGBP has been in rally mode since mid-2015.

After reaching a multi-year low at 0.6930, the euro cross quickly bounced back, putting in a multi-year high in October 2016.

However, you wouldn’t know the EURGBP is in an uptrend looking at the price action since July of 2016.

For the last two and a half years, the euro cross has been range bound between 0.8300 support and 0.9300 resistance.

But we have a new structure in play since the November 2018 low.

It seems EURGBP has carved a wedge pattern that is best viewed on the weekly time frame.

You can see how the pair has struggled for the last few weeks around 0.9030. There was even a bearish pin bar three weeks ago.

Go here to get instant access to the same “New York close” charts I use to trade price action.

Since that time though, buyers have been relatively stubborn.

It’s an indication that, in my opinion, the EURGBP is getting close to breaking free from this two-year pattern.

Given the uptrend that began in July 2015, a break higher seems to be the most likely outcome.

There are a few possible targets if we do see a weekly close above wedge resistance.

The first is 0.9300. As I mentioned above, it’s the range ceiling that has been in place since August 2017.

The 0.9300 handle is followed by 0.9500 and then 0.9800. Both levels were key factors in 2008 and early 2009.

As you may know, there is also a measured objective here.

When trading a wedge like this, you can use the height of the pattern to identify a final target/objective.

That’s easy to measure since we know the bottom is 0.8300 and the top is 0.9300 which gives us a height of 1,000 pips.

If we then measure 1,000 pips above wedge resistance, we get parity or 1.0000.

I can assure you that there will be plenty of sellers around parity if EURGBP reaches it over the coming months.

Of course, there are no guarantees.

The pair may also break lower which would expose range support at 0.8300.

But all in all, this appears to be a bullish formation. And the fact that parity is the 1,000 pip objective could be a significant clue.

It’s a waiting game for now though. Buyers first need to secure a weekly close above wedge resistance near 0.9030 to confirm the breakout.

Until then, EURGBP is vulnerable but only as far as the 0.8730 support area.

[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]

Save 40% on a Lifetime Membership to Daily Price Action – Ends January 31st!

Click Here to start profiting with Justin.


EURGBP weekly wedge pattern

Continue Learning


Leave a Reply

Your email address will not be published. Required fields are marked *

    1. Davy, have another look. I didn’t say I’m bullish.

      I wrote that the pattern (in the context of the uptrend) appears to be bullish. There’s a big difference between the two. I even wrote that EURGBP is vulnerable below 0.9030 resistance.

  1. Justin your analysis are always on point. I’ve been following you since January 2018. Despite that they is no holy grail in forex I guess you are a Wizz on diz. Justine did you lose any trade in 2018? I need your answer oh to stay inspired.

  2. Thanks Justin, for the commentary. Happy new year. The year is going to be great for all of us at DPA, in Jesus name amen.

  3. Hello Justin, I came across your blog early December 2018 and it has really impacted on my analysis.
    Every day I spend hours reading articles in this blog. I’m a year and five months into Forex trading and usaually do my analysis on the 1hr time frame. But since switching to the daily charts my losses have greatly been minimised. Thanks to your mentorship I was also able to spot the USDCAD and EURGBP setups before you posted them.
    Although my analysis was on the dailys, my entry was hourly. I also think the eurgbp setup is ranging between 0.9030 and 0.8708 region. I went bearish and locked over 50pips today.

    This is my first trade this year and indeed a great new year. Thanks you Sir👍

  4. Please I am new to trading. Justin your analysis is awesome. Please what is best time frame for me minimize my loses. Please advise me.

  5. My man, my Genius! Your analysis are so down to earth and simple. This is definitely how I like trading…not some Hollywood graphics of indicators on screen.

    Please comment, I see a Descending triangle! with the top resistance line and the the support area between 0.8700 and 0.8650(50 pips area). I think…a fall from current high is in order with the bearish pinbar to this support area. Pls comment on this, once again, thx.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}