EUR/GBP at Crucial Juncture: Multi-Timeframe Trading Insights
EUR/GBP is retesting a long-term support zone which is relevant across multiple timeframes. Let’s explore the trading opportunities available on different timeframes.
The Bigger Picture: EUR/GBP Weekly Candle Chart Analysis
EUR/GBP’s weekly candle chart shows a series of lower swing highs into a key area of horizontal support, forming a descending triangle pattern. This higher timeframe context suggests that if the support is broken, there could be downside continuation towards the 2022 lows.
Past performance is not a reliable indicator of future results
Detailed Look at the Reversal Zone: EUR/GBP Daily Candle Chart Analysis
EUR/GBP’s daily candle chart highlights the significance of the support zone currently being tested. Over the past year, this support zone has been retested multiple times, helping to define its parameters as the range between the lowest close and the lowest low.
Having formed a higher swing low in May, recent price action has seen EUR/GBP decline towards the support zone again, alerting short-term reversal traders.
Past performance is not a reliable indicator of future results
Short-term Response to Reversal Zone: EUR/GBP Daily Candle Chart Analysis
The hourly candle chart reveals that the market is already reacting to the support zone. Last week, multiple bounces from the top of the support zone were followed by a deeper test during today’s early trading, forming a bullish hammer candle and moving higher above the 9-period exponential moving average (EMA).
Past performance is not a reliable indicator of future results
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