As more and more major currencies persist to fluctuating within consolidating patterns, EURGBP appears to be accentuating quite an appealing technical trade set-up.
Data indicates that there was a breakout within a consolidation zone and it is predicted that with this daily level of analysis despite the trend direction being quite vague and it is not relatively clear that it might be a fair way to call it going sideways. Yet, many interested traders may look to the weekly charts in order to discover that generally a bullish momentum will indeed hold true for the EURGBP.
It is generally regarded that in a sideways market, prices are always more at risk to be being whipsawed, however the presence of a secondary price pattern will make this specific set-up even more noteworthy. In the data that was recovered just recently, it shows that it comes in the form of a Gartley pattern which seems to be starting to complete on the previous daily chart readings. The first pullback respected the 61.8 % retracement of the first move and should land at the next leg reacting at the 78.6 % retracement which as a standard Gartley pattern would reveal a resulting bullish movement.
A more recent move upwards in testing the Gartley high could possibly contain 180 plus pips or even more, which is relatively quite substantial for this slow-moving pair and this makes it all the more possible for traders of all risk levels of appetite to plan out better structure of trades with other appropriate risk profile.
The four-hour chart of this framework readily provides for fast online support around the expected 78.6 % Gartley reaction as previously indicated. The zone in turn, proves to be 0.8205-0.8228, which is an remarkably small 23 pips correspondingly. The more aggressive traders may opt to initiate long trades with a stop past the support area and a stop loss of 30 pips more or less, yet it would turn out to be more preferable to wait for a trade trigger to occur for better maximising potentials on the hourly chart.
Viable trade triggers normally would consist of pin bars and bullish reversal divergence and/or bullish overwhelming patterns in the hourly chart. Despite the two or three attempts being required in order to hop on this particular move, the more favourable risk profile makes this trade ideally worthwhile in terms of structure.
Finally, the slow-moving nature of the EURGBP can sometimes push the trader’s patience to his/her limits, but nonetheless it is also significantly nice to see a confluence of a trend line breakout and a Gartley pattern. Moreover, the most rewarding trades frequently occur on the heels of such false breakouts when traders are properly prep and conditioned to trade in the long side.