EUR/GBP forms a triangle on the 4-hour chart, broken twice on June 17th and 22nd, but the price fast returns twice in the formation. The currency pair traded lower on Wednesday after being rejected from the downside resistance line drawn from April 23rd. The last 4-hour candle bounces back from the horizontal support line, and it would be interesting how the price will react tomorrow. If it stays in a very tight range, the investors will remain in anticipation of higher volatility and the price action for triangle exit. But this may happen until busy economic events Friday. If the price breakthrough below Monday’s low at 0.8566 could wake up more bears, who could get encouraged to drive the action down to 0.8530 or far more around 0.8474. In a bull run case, traders would like to see a rebound back above 0.8600. This move would not only take the rate above the aforementioned downside line but would also confirm a forthcoming higher high. The bulls may then get encouraged to push the battle towards 0.8639 or to the following levels at 0.8670 and 0.8717.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.