EUR/GBP moves away from crucial long-term support

The last two days are definitely very important for the EURGBP. News crucial for this pair is flowing in constantly, giving the EURGBP fuel for some nice swings. Yesterday, the Euro was lifted by rumors that the European Central Bank (ECB) will finally act and increase interest rates. Today, we received PMs from the Eurozone and from the UK. The important one was the UK PM, which was worse than expectations and brought us a bearish sentiment. Quite surprising if you ask me but hey, sometimes markets don’t even need a reason to move.

Today’s rise of the EURGBP is absolutely crucial from a technical point of view. The weekly chart shows us a long-term situation. The important thing here is the decisive rejection of the 0.83 support (green). This support is absolutely crucial for the long-term situation and as log as we are above, the main sentiment is positive.

Today’s surge, managed to break two crucial dynamic resistances (black). At some point, we can also see an inverse head and shoulders pattern (orange) but it’s not the handsome one which you can see on textbooks. Nevertheless, the bounce from 0.83 is a fact and the log-term sentiment remains positive and stays this way as long as the price stays above the black lines. It’s possible for the price to return below the black lines, but for now it’s less likely to happen.