By: Colin Jessup
The EUR/GBP pair has been stuck in a range roughly between 0.8650 and 0.8850 since the middle of July and has come close to breaking out of its box a half dozen times. But today we have what I think is the best chance yet with a 150 pip bearish engulfing candle formed off of resistance at 0.8800. If price can break through the descending trend line at 0.8690 and close below 0.8675 we could finally see this pair officially turn bearish.
That being said, if you trade higher than 4 hour charts I would be very careful about going short until we break below 0.8650 as price has reversed several times at that very level. To the upside we will see resistance at 0.8710 and 0.8800 after that. With the mixed bag of news and the state of the EU this is one pair that I will tread lightly on and with caution.
Happy Trading
Can EUR/GBP Break Out?
Colin Jessup