This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
The EURGBP has recorded a continuous bullish move from the low of 0.8670 to a high of 0.9173.
However, the momentum indicator hinted at a trend reversal from the recent bullish and standard divergences.
Despite this, bulls are keeping the momentum going as we see a bounce on the lower regression channel. Should there be a break in the median regression trendline, we could expect an attempt towards the upper channel.
Further confirmation supports this theory, with the prices steadily increasing towards the Kijun-Tenkan convergence level.
The 1h chart shows prices are now inside the Ichimoku cloud. A first attempt at breaking the 61.8% Fibonacci Retracement level proved unsuccessful. However, the signal of the momentum indicator shows another attempt is likely.
With prices now trading well above the Tenkan and Kijun lines, the next step will be for the cloud to be surpassed. Should the golden ratio be broken, we can expect the next targets to be reached at 78.6% and 100%.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.