EURGBP – Potential Bullish Short-Term Reversal at Long-Term Support
|Price Action Context
Trading at a multi-year support zone, bears failed for now to clear the lower end of the support zone around 0.8275 and instead we can see a minor counter-trend false break at the bottom of a short-term corrective structure, followed by a bullish break of that structure, suggesting more bullish order flow is coming in short-term.
Trending Analysis
Bias is still more bearish than bullish for now, but if bulls can clear and hold above 0.8410 more upside is likely. If bears on the other hand successfully can defend the closest resistance, a move back down towards 0.8275 is likely. A weekly break and close below 0.8275 would open up more downside towards 0.8000 initially and 0.7800 in extension.
Long-Term Key Support & Resistance Zones
Mid-Term Resistance: 0.8385 – 0.8410
Long-Term Support: 0.8275 – 0.8390
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