EURGBP Bullish Medium to Long-Term Outlook “Read The caption"In August 2015, the price began a clear five-wave motive structure to the upside. By October 2016, it transitioned into a multiyear sideways movement, forming an Inverted Triangle or "Broadening Formation." This corrective phase is believed to have ended at the February 2022 low of 0.8203.
Since then, the price has moved higher, reaching 0.8275 (the 2022 high), marking wave 1. It then retraced downward in a flat formation, forming wave 2. The market now appears poised to begin wave 3.
This scenario remains valid as long as the price does not break below the wave 1 low at 0.8200. A close above 0.8626 would provide strong confirmation of this setup in the short term.
Historically, the pair has shown a consistent pattern of rapid upward movements contrasted with prolonged and slower corrective downward phases., underscoring the strength of its uptrend. For example:
- Between April 2017 (0.8303) and August 2017 (0.9300), the price rallied nearly 1,000 pips in just 4–5 months.
- From February 2020 (0.8283) to March 2020 (0.9495), it surged over 1,200 pips in just one month.
In contrast, the downward corrections have taken significantly longer:
- From August 2017 (0.9307) to December 2019 (0.8280), the decline spanned over two years.
- Similarly, from March 2020 (0.9495) to March 2022 (0.8205), the downtrend also lasted two years.
These patterns strongly indicate that the long-term uptrend remains intact.
Additionally, the price has recently formed two consecutive bullish Fair Value Gaps (FVGs) after sweeping previous lows. It retraced into the first FVG at 0.8300–0.8305, forming a swing low before moving higher with a new breakaway FVG.
