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  • Bulls rubbing hands together with 4HR MACD positive above zero and the price well above the 4-hour 21 EMA.
  • The monthly chart offers a firm bullish swing trading setup opportunity to 0.9250.

Developing story

Having recently climbed out of a bearish channel, EUR/GBP is testing a resistance while in the bullish territory on the 4Hr charts.

The monthly chart offers a bullish scenario with the price now testing support and a confluence of the 61.8% Fibonacci retracement level. 

The following is a thorough market structure analysis which favours a buy limit approach to a long swing trade to target 0.9250. 

4HR bullish

 

Daily chart bullish

The daily chart offers a positive outlook on a restest of the channel and support structure. 

Monthly chart bullish

Hourly chart bullish

As can be seen, the price is holding a support structure made up of a 50% mean reversion and prior resistance. 

However, this could be a slow burner with some sideways drift until later in the week and a swing trade opportunity is preferable. 

Swing trade setup

The 4HR chart is offering bullish conditions but the price is a little rich still while at resistance.

A pullback to the structure would offer a more favourable risk to reward ratio.

This story will evolve with the market’s price action.

More to come…

 

Expert score

5

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