Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
Cable was pretty strong this week but despite of this strength EURGBP increased sharply and reached around 0.8500 within in a daily channel.
Green trendlines above are the weekly triangle I mentioned so many days ago and they are still in action.
But if you see my daily channel the upper bond in nigh and showing 0.8550 could be another retest of it, but here I want to write about another great price behaviour; As you can see from the first swing high at 0.8940 to second swing high at 0.8647 we have got around 2 months distance but last attempt of the price to attack the upper bond is showing price wants to reach that trendline after around 20days. This is an indication of a possible breakout as price shows it has gained the strength is needed to break an important level or trendline.
So watch price action around the upper bond and wait for a breakout or a bounce back. After break of that level price can reach the upper bond of the weekly triangle again.
And if it bounced off the daily trendline they it will fall more and next level would be the beneath bond of weekly triangle around 0.8200 level.
Daily Fibonacci levels also showing that price is going to bounce off the 61.8% level:
So best point for going long would be after break of the daily channel and then you can add to your long positions after break of 0.8644.
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