EUR/GBP triple bottom formation might result in the upside move

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Updated: 21 November 2020

Hello traders! On November 11, EUR/GBP has formed a triple bottom near the 0.8860 support area. After this price went up sharply, showing how strongly bulls were defending this level.

Price went up and tested 0.9000 key psychological resistance, which previously acted as the supply/demand zone. Currently, the price has pulled back yet again and tested the 0.8930 support area, which is confirmed by two Fibs, 50% and 23.6% as can be seen on the chart.

If this will continue to be respected, specifically, if 4h and/or daily closing price will remain above the recently pretend low at 0.8914, the upside move should be expected. Price can move up to re-test the 0.900 resistance once again. The resistance also corresponds to two Fibs, both of which are 50% retracement levels. At the same time, it goes in line with the downtrend trendline as well as the 200 Exponential Moving Average.

Considering when the trendline with the 200 EMA is crossing with the upside target, EUR/GBP might hit 0.9000 before the end of the month. Therefore, this could be a relatively fast growth, which might occur next week.

On the downside, 4h and/or daily close below 0.8914 will immediately invalidate bullish forecast, and EUR/GBP with high probability will test 0.8860 support area for the 4th consecutive time.

Bias: Strongly bullish while daily closing price remains above 0.8814

Potential Support Zone: 0.8920 – 0.8930

Potential Targets: 0.9000

Have a profitable trading!