EURGBP Daily – Bullish momentum on the rise

Theunis Kruger

The EURGBP currency pair, on the D1 time-frame, was in a downward spiral until the 23rd of November when a higher bottom was recorded at 0.88664. Bulls then started prevailing and demand began overcoming supply.  

After the higher bottom at 0.88664, the price navigated upwards through both the 15 and 34 Simple Moving Averages and the Momentum Oscillator crossed the zero baseline into positive terrain.  

A higher top and critical resistance level was formed on the 2nd of December at 0.90841 with bears subsequently applying downward pressure. However, the bears quickly ran out of steam with a higher bottom forming on the 4th of December at 0.89827. Although a Spinner Candle that signifies indecision occurred in the market at that time, the bulls took firm control of the price again when the next day’s trading session started.  

On the 5th of December, the EURGBP pair broke through the critical resistance level at 0.90841 with a long trade being triggered and three possible price targets could have been calculated from there. Applying the Fibonacci tool to the top of the resistance level at 0.90841 and dragging it to the bottom of a possible support area near the 34 Simple Moving Average at 0.89827, the following targets may be considered. The first target can be projected at 0.91468 (161 %) and the second price target may be likely at 0.92482 (261.8%). The third and final target may well be expected at 0.94122 (423.6%) if the uptrend continues making higher top and bottoms. 

However, if the 107.155 support level is breached, the bullish scenario above is invalidated and will need to be reassessed.

As long as markets maintain a bullish sentiment and demand overwhelms supply, the outlook for the EURGBP currency pair on the Daily time-frame will remain bullish. 

 

EURGBP Daily Price Chart

 

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Theunis Kruger

Latest news

Scammer Alert – This is One Broker to Definitely Avoid
The run into the year-end is often a time for increased price volatility and new trading opportunities, but some bad news comes with that. Read more
Could Earnings Season Surprises be Just Around the Corner?
The quarterly process of US corporations announcing their most recent earnings reports has for some time been a procession of ‘beats’. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 Your capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2006 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    FXTM Logo
    Vantage FX logo
    ATFX Logo
    Pepperstone Logo
    Plus500 Small Logo
    Forex.com Logo
    LegacyFX Small Logo
    XM Logo
    AvaTrade logo
    IQ Option Logo
    BlackBull Markets Logo
    IC Markets Logo
    OctaFX Logo
    City Index Logo
    skilling logo
    investous logo
    HYCM Logo