False Breakout on EURGBP Sparks Long-term Buying Optimism

By Tomasz Wisniewski|

Published: March 13 2024, 02:57 GMT+0

False Breakout on EURGBP Sparks Long-term Buying Optimism

Today’s focus shifts to EURGBP, presenting a pivotal moment in its trading pattern. The intrigue begins with the currency pair’s struggle around the critical support level at 0.852, a threshold that has consistently provided a foundation since the latter half of 2023. The recent market opening introduced a twist with a bearish gap, momentarily piercing below this established support. However, the narrative took an unexpected turn as prices swiftly rebounded, vaulting back above this crucial juncture.

This sequence of events—the sharp drop beneath the orange line followed by an immediate recovery—crafts a textbook example of a false bearish breakout (green). Traditionally, such occurrences are harbingers of potential upswings, suggesting a buying opportunity might be at hand.

Yet, the path forward is not without its hurdles. The price now confronts dual barriers: a descending trend line that has guided the mid-term trajectory (black), and a horizontal resistance (yellow), both demanding attention. The forthcoming chapters of EURGBP’s story hinge on its ability to transcend these boundaries. A triumphant breach would not only signal a shift in momentum but also herald a robust long-term bullish phase.

Currently bathed in a glow of cautious optimism, the market awaits definitive action—a break above the demarcated resistances—to solidify the bullish outlook. For now, the sentiments lean positive, buoyed by the recent rebound, but the clarity of a sustained upward move rests on overcoming the looming challenges.

Source: https://www.axiory.com/analytics/technical-analysis/false-breakout-on-eurgbp-sparks-long-term-buying-o