EUR-GBP-BUY
EURGBP about to lift offAfter price broke structure with momentum, it left behind a huge imbalance and a clean POI. Price used supply to retrace back to mitigate the POI and is looking to take out trendline liquidity at the same time. Our overall orderflow is currently bullish, so area is a good place to join in on the ride to the upside.
EURGBP for a possible lift offAfter price tapped into higher timeframe POI, it broke structure and gave us a change of character in lower timeframe. The break in structure was of high momentum such that it left behind an imbalance with a clean POI. Price was consolidating before the expansion that broke structure, and has now retraced back to that area for one more mitigation before continuing up to fill higher timeframe imbalance and to take out equal long term highs.
EURGBP TO BUY, FIB 100%, TP: .8585EURGBP has been on a wild ride of price action through a downtrend in the past couple days. However, it appears to have done a breakout as a buy position. Therefore with the downtrend retracement that hit support levels, we could be seeing EURGBP going for a buy.
TP: 0.8585+
EURGBP to reach for the "stars"?The EURGBP looks like it is on track to break above 0.90 resistance level, which was last breached in September 2017.
If the trade setup is completed (breaking strongly above 0.90), I anticipate a massive move towards 0.93
For this to happen, we need either the GBP to weaken, possibly due to Brexit uncertainty, or the EUR to strengthen, possibly arising from better economic data and more hawkish ECB.
However, we have the ECB rate decision and press conference tomorrow.
Prudent thing to do, will be to wait for the news, identify a directional bias, and confirm resistance has been broken.