- Accumulation is taking place in EUR/GBP below the bearish 50 EMA channel.
- EUR/GBP bulls seeking a test of the M-formation's neckline.
The following is an analysis of EUR/GBP that illustrates a bullish hypothetical scenario based on price behaviour, chart patterns and market structure.
EUR/GBP daily chart
The M-formation is a bullish reversion chart pattern and has a high completion rate. The price would be expected to revert back to test the neckline of the pattern. In this case, where it meets the 50% mean reversion point near 0.8565.
EUR/GBP hourly chart
Traders can look for an entry to target the neckline from a lower time frame, such as the hourly chart. On the hourly chart, traders can monitor for bullish structure. Hypothetically, the above illustrates a bullish scenario.
At the moment, the price is buried deep below resistance, but the reverse head and shoulders pattern, a bullish formation, could be in the making. The price will need to be supported above 0.8520, resulting in a right-hand shoulder of the hand and shoulders pattern, as illustrated above. In doing so, bulls will monitor for a break of the neckline and the dynamic trendline line resistance.
As the price moves beyond the trendline resistance, the 50 EMA channel will move from bearish to neutral and then bullish as the price continues its northerly trajectory. This could equate to further demand from buyers and help the price along the way to the target and beyond for the coming days.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD flat lines around 0.6500 ahead of Australian employment details
AUD/USD oscillates around the 0.6500 mark during the Asian session on Thursday, awaiting Australian jobs data before a firm intraday direction. Trade uncertainties, rising geopolitical tensions, and the Fed's hawkish pause weigh on investors' sentiment. This, in turn, acts as a headwind for the risk-sensitive Aussie.
USD/JPY struggles below 145.00 amid reviving safe-haven demand
USD/JPY remains depressed below the monthly peak retested the previous day as a softer risk tone benefits JPY. USD struggles to capitalize on the post-FOMC rise to a fresh weekly high, which weighs on the currency pair. However, reduced bets for another BoJ rate hike in 2025 hold JPY bulls from placing new bets and limit deeper losses.
Gold price bounces off weekly low; bulls seem reluctant amid hawkish Fed
Gold price attracts some dip-buyers during the Asian session and reverses part of the previous day's slide to the weekly low amid a revival of safe-haven demand, bolstered by trade uncertainties and rising geopolitical tensions. Moreover, a subdued USD price action acts as a tailwind for the bullion.
Australia unemployment rate expected to signal a broadly stable labor market
The Australian Bureau of Statistics will release the May monthly employment report at 01:30 GMT on Thursday. The country is expected to have added 25K new job positions, while the Unemployment Rate is projected to hold steady at 4.1%.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.