EURGBP has made some impressive moves up since the Low from May 29th and Price just fell short of the Highs of April 11th before falling into a very familiar Bullish Pattern, the Falling Wedge!The Falling Wedge is typically a Bullish Pattern where we expect Price to give us a Bullish Break of the Falling Resistance and Successful Retest of the Break before Price heads Higher!
Wedge Patterns can play both Reversal and Continuation Patterns dependent upon the location they form and surrounding Major Support/Resistance or Highs/Lows. In this case, we will be looking for a Continuation with Price being in an Uptrend before pausing slightly for a Consolidation Phase to form the "Triangle" of the Pattern.
*It is important to note that both the Falling Resistance and Falling Support have only been tested twice where three tests of both Trendlines should point to a strong equilibrium from both Bears and Bulls, validating the legs of the Triangle and strengthening the Consolidation Bias. ( So we could see Price test the Falling Resistance one last time before falling down to the Falling Support for a 3rd test! )
Lastly, when it comes to a Wedge Pattern, we should suspect that once Price makes a 3rd Test of the Falling Support and Retraces to the 50% Fibonacci Level @ .85887, this will signal the End of the Consolidation Phase!
- And this will be the time to enter!
**Once the Pattern is Confirmed and Breakout is Validated, based on the "Flagpole" or Rally prior to Price falling into the Consolidation Phase we can anticipate Price to potentially rise to the most recent High on April 11th of .87374 and give the next Previous High on November 16th 2023 of .87657 a try!
Fundamentally, news is light this week for both currencies in the pair with GDP m/m releasing for GBP on Friday, July 11th with a Forecast of .1%, a .4% increase from June's -.3%
Also, CPI y/y for GBP will be released the following week on Wednesday, July 16th.
For All Things Currency,
Keep It Current,
With Novi Fibonacci!
Novi's Trading Channel
t.me/+l3fTcsZu91ZiZDkx
Keep It Current,
With Novi Fibonacci!
Novi's Trading Channel
t.me/+l3fTcsZu91ZiZDkx
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For All Things Currency,
Keep It Current,
With Novi Fibonacci!
Novi's Trading Channel
t.me/+l3fTcsZu91ZiZDkx
Keep It Current,
With Novi Fibonacci!
Novi's Trading Channel
t.me/+l3fTcsZu91ZiZDkx
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.