EUR/GBP: trading recommendation (June 19)
By Fellipe Erazo
The EUR/GBP could enter a consolidation phase above 0.7964 level, as this pair has been in a strong bearish trend in recent weeks. Now, the EUR/GBP is facing resistance at 23.6 Fibo level (0.8008). If the pair manages to make a breakout at that level, the next target would be the 38.2 Fibo level (0.8036).
However, our hypothesis is that the EUR/GBP could start a bullish trend in the short term, so it is very likely that this pair rise even to the resistance level of 0.8080, where the 61.8 Fibo level is located. For now, this pair remains below the 200 and 500 SMA. The CCI indicator hasn’t shown divergence and GANN Line is supporting this pair currently.
Trading recommendations: Place buy orders if the EUR/GBP does a breakout at the resistance level of 0.8008, with take profit at 0.8058 (50.0 Fibo level). Our consolidation phase’s hypothesis will be invalidated if the pair does a breakout at the support level of 0.7964.
Chart. H4 EUR/GBP