EUR/GBP Price Analysis: RSI OB, bullish reverse H&S in the making

EUR/GBP is trading within critical structural areas throughout the time frames.
The price is trading with an immediate bearish bias while longer-term setups apply on hold of structure.
Bears look to high volume zone at 0.9038/50 in the meantime.

Ross J Burland FXStreet

The following is a top-down analysis from monthly to the 4Hr charts which have seen a bearish correction and RSI moving from overbought (OB) territory.

There are prospects for the completion of a bullish reverse head and shoulders pattern to fit the upside narrative from a longer-term technical analysis as follows:

Bulls target strong monthly resistance

5-wave analysis is bullish

Still work to be done by the bulls, leaning on strong support/bullish price action

The trend-line is menacing, still higher lows are favourable

Daily structures and price-flow prospects

4-HR Reverse Head & Shoulders taking shape as RSI moves out of OB territory

The conclusion to the analysis is that the price is likely stuck in a barroom brawl of consolidation for some time to come at this juncture.

Breakouts of the range are required for a convincing swing-trade set-up.

From a volume profile, price is leaving high volume levels for the week's range so far.

A break of 0.9080 opens risk to 0.9060/38 high volume targets on the hourly chart:

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.

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.