The Unstoppable Rise of EURGBP
20 October 2023
In the final analysis of this week, our focus turns to the EUR to GBP pairing, a currency pair capturing the attention of traders worldwide. The reason? It's hitting new long-term peaks. In fact, we're observing the currency's apex since May 2023. And if that isn't enough, it's now breaking through a key horizontal resistance.
But before diving into the nitty-gritty, it's crucial to appreciate the broader context. September marked a pivotal moment for the EUR to GBP. During this month, the currency's value surpassed the red downtrend line, which many interpreted as an initial signal to buy.
Following this uptick, there was a bearish correction. It took on the form of a wedge, delineated by blue lines. However, just days ago, a notable shift occurred. The upper line of this wedge was surpassed, propelling the currency even higher and reinforcing the buy signal.
The latest twist in this saga is the successful breach of a pivotal horizontal resistance. This is located specifically at 0.87 and is distinguishable by its green hue. The outlook remains optimistic provided the currency remains above this resistance. But a word of caution: a decline beneath it would be interpreted as a sell signal. It would indicate a false breakout. However, currently, such a scenario seems rather unlikely.