Header help text

Start trading with a free $30

There is no better time than now
Your first deposit is on us

Grab your $30 from XM

by Seth Parker on October 3rd, 2018

EURGBP Analysis – Bounce from the important support

On the currency market, we will cover the main pair of Europe: EURGBP. Here, yesterday, we received a fresh buy signal but the situation was not so good as we anticipated in our previous piece about this instrument. We wrote an analysis of the EURGBP on the 24th of September, when the price was finishing a nice spike up. Back in that day, we wrote this:

“EURGBP broke the upper line of the wedge, which in theory brings us a proper buy signal. The sentiment is positive, as long as we stay above the green line. „

rurgbp chart

The correction, which happened after the breakout was much bigger than our expectations. That is the place, where the importance of the green line jumps in. The drop reached the green line and used that as a support – the positive sentiment got defended. The decline formed a flag formation (blue lines) and yesterday, the price broke the upper line of this pattern. When this breakout comes together with a bounce from a horizontal support – we do have a proper buy signal. Positive sentiment will be denied, when the price will come back below the green area but that is less probable at the moment.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

More content by Seth Parker

Comments (0 comment(s))