04.09 - EUR/GBP keeps the bullish chart pattern
- by George Solotarov
EUR/GBP looks for a firm direction around 0.8925 while heading into the European open on Friday. The pair confirmed a bullish chart pattern on the four-hour chart the previous day while bouncing off the multi-day bottom. The move gained support from bullish MACD but couldn’t cross 50-day EMA. However, the pair’s sustained trading beyond the upper line of “falling wedge” keeps the buyers hopeful.
As a result, a clear break of 0.8935 immediate resistance will escalate the pair’s run-up towards a 200-bar EMA level of 0.8988. Though, a falling trend line from July 27 will restrict an additional upside near 0.9020. Meanwhile, the pair’s declines below the bullish pattern’s resistance line, at 0.8905 now, will recall the sellers targeting the latest multi-day low near the 0.8867-63 area including multiple levels marked since the early April.