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EURGBP – Bullish Patterns

Razvan Mihai

Analyst

On a 240 minute chart the price of EURGBP has drawn a bullish pattern called Pennant. After a strong rally which ended at 0.7423, the price started a corrective move which did not hit the 50% retracement. This pattern can be confirmed by a break and close above the upper line. In this situation another rally can be expected.

On a 60 minute chart, we can observe an up channel. The price is currently testing the 0.7355 local resistance. A break and close on this time frame above the resistance would signal the beginning of a new rally, targeting 0.7375. Traders should pay attention to false breakouts. A false breakout could signal a future drop for the Euro against the GBP.

A break below 0.7336 support, would signal a strengthening of the pound against the European single currency.

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