- 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
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Daily chart bullish
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The daily chart offers a positive outlook on a restest of the channel and support structure.
Monthly chart bullish
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Hourly chart bullish
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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.
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This story will evolve with the market’s price action.
More to come…
