Euro to pound quotations on the following days close ‘green’. As can be seen in the EUR/GBP daily graph below, during these increases, buyers managed to overcome a key resistance zone / consolidation constraint between 0.8600 and 0.8715. This week the price has already reached its next target.
EUR/GBP is testing the peak of February 2019.
On Wednesday, the price marked the last maximum of the growth rally around 0.8839, where are placed highs of February this year. Actually, the price has been moving in the range of Wednesday’s trading session, which has led to the formation of an inside bar.
If the inside bar were to be broken down, buyers would still have to face the 61.8% of this year’s total decline of 0.8866. Only if it was broken would it be possible to open the way for further growth.
Alternatively, breaking the mother’s candle minima (0.8771) would indicate a potential for a corrective movement towards the zone between 0.8715 and 0.8680.
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