To receive Ilya's analysis directly via email, pleaseSIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy:Flat
  • Euro testing trend-defining resistance vs. Pound as recovery accelerates
  • Breakout confirmation needed to make for an actionable long trade setup

The Euro returned to the offensive against the British Poundas expected, with prices now challenging a trend-defining technical resistance threshold. The pair advanced after putting in a bullish Piercing Line candlestick pattern. The formation of a Rising Wedge chart setup typically carries broadly bullish implications.

Pivotal resistance comes in at 0.8922 (Wedge top, 23.6% Fibonacci expansion), with a break above that confirmed on a daily closing basis opening the door to challenge the 38.2% level at 0.9067. Alternatively, a move back below former resistance at 0.8806 exposes the January 25 low at 0.8687 anew.

Prices are too close to resistance to justify entering long from a risk/reward perspective. Furthermore, the Wedge setup needs confirmation on a close above its upper boundary to be actionable. Meanwhile, taking the short side without a viable reversal signal seems premature. On balance, staying flat seems prudent.

Need help with your strategy? Check out ourbeginners’ guide for FX traders!

Euro Uptrend Set to Accelerate?


Improve Your Trading Skills


"Simply a Must Read for Every Serious Forex Beginner"

Available at Amazon

Now also for Kindle 

get forex book