EURGBP had a strong run higher from the 3rd of September 2020. This impulsive move higher gave traders a clear opportunity to go long at the break of the ending diagonal pattern that had formed.
After a bullish move higher, we can expect a correction lower, and this is the set up we need for the next few trading sessions. We can expect the correction to move down to the previous wave iv and the 50 Fibonacci level. The correction gives us selling opportunities on rallies.
The correction lower will allow us to go long on the next move higher. After such a strong move we may see a flat, expanded flat, complex correction or triangle.
Key news events to look out for this week Thursday 17th September Monetary Policy Summary, Official Bank Rate and MPC Asset Purchase Facility Votes. Friday 18th September Retail sales m/m.
Res: 0.92582; 0.92914; 0.93293
Sup: 0.91890; 0.91308; 0.90806
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