Timeframe: W1
Recommendation: Long Position
Entry Zone: 0.7860 – 0.7910
Take Profit Zone: 0.8260 – 0.8310
Stop Loss Zone: 0.7710 – 0.7760
The EURGBP has corrected extremely over the past 17 trading months. The correction took this currency pair from an intra-day high of 0.8815 to an intra-day high of 0.7873 where it currently trades. This currency pair is currently in the process of forming a double bottom formation which is a bullish chart pattern and it is expected that the EURGBP will be able to reverse its correction from current levels.
Forex traders should be careful and consider multiple entry levels as price action solidifies support levels, but expect a reversal back up to its 50.0 Fibonacci Retracement level. Any further pullbacks from current levels should be taken as a good opportunity to enter new long positions. Downside potential is currently rather limited while upside potential is very attractive.
