EURGBP Weekly Technical Outlook
On the weekly time frame, the pair commenced an ascending trend in November 2015. Since then, price action has formed two ascending price waves with complete pull backs. The most recent pull back, a 38.2% Fib retracement of the rally from November 2015 occurred in December 2016 and was retested during the early weeks of 2017. After operating in a range for much of February, price action formed a bearish candlestick two weeks ago just below the range but was hindered by a bullish struggle. Last week, a relatively big bullish candlestick formed as an ndication of the intention of bulls to dispose the market further upwards from the range. Should this materialize, an initial target is likely to be the immediate resistace around 0.8755, which may expose the 0.9023 handle.
On the daily time frame, the price action has moved away from the major trendline on the weekly time frame (chocolate colour) to respect an inner ascending trendline (navy colour) – an indication of an increased momentum.
Price action and order flow on the H4 time frame favour the bulls. However, as price action is operating around an S/R zone on the H4 time frame, any further move upwards will start with another bullish cabdlestick that rejects the zone and take away the resistance around 0.8660.
I may be wrong. Trade safe and prosper.