EUR/GBP is poppin’ up long wicks near a key trend support zone.
Think the pair will extend its uptrend in the next trading sessions?
Let’s take a look at the 4-hour time frame!
The ECB takes the stage today, and judging from members’ speeches we’ve heard lately, they may not sound quite as dovish this time around. Traders will be watching for any shift in tone that hints at how long rates might stay where they are.
Over in the U.K., the pound could get tossed around by Friday’s GDP release and a batch of mid-level reports. Put the two together, and you’ve got EUR/GBP sitting at a crossroads, where the data and central bank rhetoric could decide if the pair keeps its uptrend alive or runs out of gas.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the euro and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/GBP has been carving out higher highs and higher lows since mid-August, but it recently pulled back toward the .8650 psychological level. That spot lines up neatly with the S1 Pivot Point at .8632 and the lower edge of an ascending channel on the four-hour chart.
If the pair can print bullish candles and stay above the S1 support, then buyers could push it back toward the .8680 mid-channel line or even retest the .8700 September highs.
But if the downswing stretches further and EUR/GBP breaks below the channel and S1 area, then the pair may be looking at a move down to the .8600 handle or possibly fresh September lows.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
