WIKIFX REPORT: EURGBP Takes First Step, but Will We See a New Continuation Higher?

In this article we are focusing on the EURGBP. The price formed a solid bar higher in previous session and could be the start of a new continuation.

The price continues to trade outside the downtrend, and we could be seeing a possible start of a new uptrend after the previous day's solid close higher. We want to see a break of the current resistance level (.8453) and a break of the existing supply area that runs up to .8470.

If buyers can clear these levels, then a new continuation will be checked to confirm. If the trend does continue, we should be looking at .8533 as the next point of resistance.

The GBPUSD is also a factor, and well be looking for a break lower on that pair to help boost the case of the EURGBP. A close back below .8435 would suggest that this pattern could be failing, and traders may need to give the market more time.

If you have any thoughts on this pattern or on the EURGBP, It will be interesting to hear your feedback.