On march 6th we published an update of the EURGBP price action. We explained how price had been consolidating within the mentioned levels. check link for reference By looking at the H4 time frame you could see that the level 0.88509, which acted as a resistance had been broken. Price moved above and broke the Fibonacci 50,0 level indicating bullish momentum for the pair.

In our last post we wrote that if price broke past level 0.88509 and Fibonacci level 50.0. The we would see price move to Fibonacci level 38.2 and possibly even level 0.91389. If we look closely at the Daily time frame, we see how price closed as an engulfing bullish candle on Friday. Thus, Giving us a confirmation for bullish movement in this week’s market performance .

EURGBP Daily chart 18 may 2020
EURGBP Daily chart 18 may 2020

If we take a look at the weekly time frame chart. We also see an engulfing weekly candle stick formation clearing 5 weeks of consolidation. We see the pair break major resistance levels as well. Providing us with a signal for possible bullish movement in the upcoming weeks.

In a situation where the market has other plans. We could see the market reverse back to the Fibonacci level 50.0 ,level 0.88509 and possibly also to Fibonacci level 61.8 .Level 0.86810 serves as a major resistance level at the moment. If prices breaks past it.This would expose level 0.82889.

EURGBP H4 chart 18 may 2020
EURGBP H4 chart 18 may 2020

This Analysis is a setup for the pair. It is not in any form an investment advice. Subscribe for smart signals to get trade entries and exits.

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read risk warning before deciding to trade the markets.

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