EUR/GBP Breakout Seems Confirmed!

EUR/GBP Breakout Seems Confirmed!

EUR/GBP dropped a little in the H1 chart at the time of writing trying to retest the support levels (resistance has turned into support). The bias is bullish in the short term after breaking above the downtrend line.

The pair is somehow expected to increase after some poor UK data reported today. The GDP increased only by 0.8%, versus the 1.5% estimate, the Industrial Production registered a 0.8% growth, below 1.3% expected, while the Manufacturing Production dropped by 0.1%, even if the specialists expected to see a 0.9% growth.

EUR/GBP H1 Technical Analysis!

EUR/GBP is testing and retesting the broken downtrend line, the Falling Wedge’s resistance. It’s located above the weekly pivot point (0.8584) level. Staying above these levels could bring a new upside momentum.

Still, we need confirmation before going long again. Technically, a new higher high could really activate a potential growth towards the 0.8615 static resistance.

Conclusion! 

The current decline could be only temporary. EUR/GBP has come back down to test and retest the broken downtrend line. Jumping and closing above 0.8596 today’s high could bring a long opportunity.

 

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.