The EUR/GBP is building a range above the 21 ema zone (green box) after breaking above the resistance trend lines (dotted purple). The EUR/GBP could be ready for a strong bullish breakout.
Price Charts and Technical Analysis
The EUR/GBP needs to break above the resistance of the previous wave 4. A bullish breakout would confirm the trend and momentum change from down to up. Bullish price action could take place within a wave 3 (purple). The first target is the Wizz 6 level and the previous top. But the start of a wave 3 could push it for a new high and beyond. A bull flag pattern would help confirm the uptrend view (green check).
The EUR/GBP could also break south but the previous bottom is likely to hold. An inverted head and shoulders pattern is likely to act as support for a bullish bounce. Only a break below the bottom invalidates (red x) the current bullish outlook on the EG.
