20 November, AtoZForex.com, Islamabad – We were waiting for some more down in EURGBP towards 0.6935 levels for a safe buy, but after last week closing it cleared the next bullish move. If we see the daily candle, then we will get a clear idea that this consolidation pattern which is between 0.6935-0.7488 will expand more after triple bottom around 0.6981 sides and EURGBP bullish convergence can occur soon towards 0.7150.
Be careful with the strong support from 0.6935, as it might bring a reversal. Yet, after the triple bottom we suppose that it’s the turning point and prices can reverse back from the same level. There is no clear sign of down trend resumption yet and EURGBP might extend recent sideway pattern with another rising candle towards 0.7150. In bullish direction after breakage of 0.7150-0.7196 resistances will turn bias to the upside for 0.7488 for the extension of this current consolidation pattern.
However, if EURGBP continued a break towards 0.6935 then the next downside penetration will target its major key support at 0.6635. The RSI Oscillator is also supporting buy as it is almost near to its 30 level at bottom side which indicate long term buy from every bottom for completing its move to reach 70 levels. The lack of strength and rejection from 55 weeks EMA suggests that the down trend isn’t completed yet. Price action from 0.6935 is possibly just developing into sideway consolidation pattern. Hence, in case of another rise, strong resistance would be seen at 0.7650 to limit upside.
For Long term I am watching this pair to reach 0.7150-07196 which could be its first ultimate target for this current consolidation pattern. A clear break of this level will lead this pair towards 0.7488 and 0.7650 sides to end this move. Until this pair sustains its triple bottom at 0.6982 we are safe in buy, but a clear break of EURGBP bullish convergence point can lead this towards 0.6935 which is its major monthly support level and a trend turning point either for big down towards 0.6635 or same consolidation pattern for 0.7150- 0.7488 recoveries. The breakage of either side of its major trend lines for today will clear its next move, for buy trend line exists around 0.7023 and for sell breakage of 0.6982.
For scalping purpose I will suggest buying it near from every bottom around 0.6982 for the target of 0.7045-0.7082 side. Considering range then 0.7040 could be a good selling point for 0.6990 side.
Daily Pivot: 0.7003
Key Buying point for today: 0.6982
Key Selling point for today: 0.6960
My Trade Order for Today
Buy EURGBP: 0.6982
Stop Loss: 0.6954