Medium term
Trade view / 27 June 2016 at 6:13 GMT

Continued bullish outlook for EURGBP

Analyst / PIA First
United Kingdom

The USD index gapped higher again overnight (95.68 Friday's close) and, although we have stalled close to the previous swing high at 96.70, there is no clear indication that the rally is faltering.

Any dips are likely to be met with buyers. The medium term focus remains on 102.00 (current price 96.29).

We are going to look at EURGBP today. 

Monthly – clearly broken out of the channel formation to the upside. We are likely to post a bullish Outside Candle this month.

Although this formation is much stronger at the base of a trend, it does highlight a positive bias. Trend line support is now located at 0.8130.

EURGBP yearly chart

Source: Saxo Bank

Weekly – This timeframe highlights a bullish Elliott Wave formation.

The 261.8% extension level is located at 0.8400 (from 0.6929-0.7491). We have gapped higher overnight (0.8100 Fridays close).

EURGBP quarterly chart

Source: Saxo Bank

Daily – We have an expanding wedge breakout. The trend line support is now located at 0.7980. With the bespoke support located at 0.7975, we look to buy into dips close to this support level. This is a medium-term trade call.

EURGBP daily chart

Source: Saxo Bank - create your own charts with SaxoTrader. Click here to learn more.
Management and risk description


Entry: Buying at 0.7990

Stop: 0.7940

Target: 0.8400

Time horizon: This week 

— Edited by Adam Courtenay

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Non-independent investment research disclaimer applies. Read more
27 June
Macro Macro
Continued bullish outlook for how long, what about for the medium to long term trading? The first chart shows multi-year bear channel and could be good opportunity to short EURGBP top of the channel. Not that sure if Brexit is causing a permanent channel breakout from the multi-year bear trend? Dont think im gonna do the trade just my thoughts. Short EURUSD and GBPUSD is easier trade to make.


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