Breaks above a trend line today
The EURGBP is trading at the highest level since September 2017.
In the process the pair has been able to
- Crack above a topside trend line at 0.9069.
- The last three days has been above the swing highs from October, November 2017 and the earlier August highs in the 0.90129 to 0.9032 area.
- The price has been up for 5 straight day and
- Has been up on 9 of the last 10 trading days.
On that chart, staying above the breakout level at 0.9069 keeps the bulls in charge.
Drilling to the hourly chart, the 0.9068 level (and moving higher) is a lower channel trend line (see chart below). That increases that levels importance for the bulls (and bears on failed break). A move below would muddy the waters for the buyers.
On the topside, the trend line above comes in at 0.9109 and would be a line to chase higher for the bulls/buyers. Testing that line should solicit selling/profit taking.
SUMMARY:
Right now, the bias for the EURGBP is bullish. We trade above a trend line on the daily at 0.9069, and accelerated the momentum higher off a trend line on the hourly chart as well (at 0.9068)
We do, however, trade in the middle of the upper /higher channel on the hourly. So there is room to go higher, but there is room to go lower too.
Nevertheless, if the price can stay above the 0.9068/69 area, the buyers remain in control. Move below and the waters are muddy for the run higher with 0.90129-0.9032 the next support target on the downside.
