Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/GBP in a Double Top Attempt

The EUR/GBP pair has been bullish since the end of May, rallying from a low of 0.7055 to 0.7385 to start June. After a dip to 0.7258, the EUR/GBP rallied back to the 0.7385 high to start the week. 

EUR/GBP 4H Chart 6/10
(click to enlarge)


The 4H EUR/USD charts shows that the pair is essentially forming a double top. In this scenario, a break below the 0.7258 would signal a bearish correction, or possibly a bearish continuation. However, I would not be convinced of a bearish continuation until a break below 0.72. Another sign that bears are in control would be a rally that fails to break above 0.7325. IF price can climb back above 0.7325 after breaking below 0.7250, we should anticipate further bullish outlook at least in the short-term.

In the medium-term, we should note that EUR/GBP is neutral-bearish. 

EUR/GBP Daily Chart 6/10
(click to enlarge)

With EUR/GBP trading in slightly above the middle of the multi-month consolidation range between 0.7014 and 0.7483, let's keep any bullish or bearish outlooks to the very short-term. Perhaps, because of the prevailing downtrend, we should have some bearish bias. Unless pice breaks above 0.76, the market is still neutral-bearish. Above 0.76, the market would likely have turned bullish.