Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
Eurgbp has been ranging in a monthly pennant for several months now. The chart below shows a strong support line, as well as an outer resistance line and an inner one that formed as the characteristic narrowing effect intensified. Resistance from the inner line is seen at around .8500, with the longer-term resistance at .8700s. On Tuesday, price moved back towards the pennant support at .8350s, and bounced as though on cue before pulling back to a broken trendline on the hourly chart. At this level ( .8400) it appears to be the potential for an inverse head and shoulders reversal setup to take place. Neckline resistance is at .8435, so that could be a first target area for longs. I entered long at the stated level, and am looking for a final target at .8485. The pair will eventually perform a breakout, so I am trading the range support with full awareness and acceptance of the accompanying risks.
Thanks for reading. Safe and happy trading to you all! 🙂
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