EUR/GBP Price Analysis: Bulls target confluence of monthly resistance area

EUR/GBP bears take the price into a demand area.
The M-formation's neckline is an area of strong confluence.

Ross J Burland FXStreet

EUR/GBP is offered on the session, so far, but there is a promising bullish case for the week ahead.

The following offers a top-down analysis and illustrates why the price can be expected to move higher from a demand area.

Monthly chart

We have a combination of a bullish monthly head and shoulders as well as a bullish M-formation.

Weekly chart

The price has melted into a demand area and the green candle in all of the bearish impulse is a liquidity zone for bulls to target.

Daily chart

The confluence of the resistance area, or the M-formation's neckline, with the liquidity of prior support as well as a confluence of the Fibonacci zone across, multiple time frames, is a compelling upside target for the bulls.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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