Dear Traders,

The EUR/GBP has broken upwards from its corrective channel. Could this be the start of increasing bullish momentum? Today’s analysis will provide a technical and wave update for the this currency pair.

Bullish Continuation is Shaping Up…

The EUR/GBP has broken out of the corrective channel (blue) that I had been tracking during previous posts. The correction appears to have taken only a slightly different shape than initially expected. It has most probably finished already at the May 29 low by creating a double-zigzag overall.

Price created 2 impulsive moves to the upside and 2 corrective moves to the downside since then, posting 2 higher lows in the process. Price has now also managed to remain above the 144 EMA of the 4-hour chart. All in all, this is a setup with good odds and good reward to risk ratio

The scenario remains valid as long as price stays above the ascending black trendline. If we are indeed seeing the early stages of an extended bullish impulse, the 161.8% Fibonacci extension of wave 1 (yellow) is a realistic target, which lies around 0.9050.

All the best along your trading journey.

Hubert

(P.S.: Price continued upwards during the time of this writing, which is a good sign. Waiting for a small pull back on a small time frame could be a valid entry for anybody who has not entered earlier.)

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