EUR/GBP long-term technical analysis
EUR/GBP showed two-month neutral close which tells us the market still uncertain in the next direction. The pair might continue its sideways trend as Brexit delayed and the market thinks the situation will not change much until next deadline.
On the global market, the U.S-China trade war intensified this week and might reach a conclusion soon. It is either a make or break situation. At the current time, China delegation is in Washington negotiating for a deal before Friday tariff deadline.
Click here to read previous EUR/GBP long-term technical analysis
New Month
Monthly chart
EUR/GBP closed the April trading month as doji candlestick pattern, indicating uncertainties in the next direction. The pair range tighten compared to the March range. This month, the pair dropped but manage to recover to its opening level. Will we see another doji pattern on the chart, prolonging the sideway situation of EUR/GBP?
Weekly chart
Not much clue yet on EUR/GBP weekly chart, the pair bounced higher this week but still below previous week high. If it continues higher then we will see a test on 0.8700 – 0.8750 range. Traders will continue to wait patiently under the current situation.
Daily chart
The high gets lower and the low gets higher, the situation translated into a sideways trend. Traders could use the moment to implement ranging strategies for now while waiting for momentum movement.
Trade plan
Long strategy: Take short-term long positions near the blue trendline on the daily chart.
Short strategy: Short near 0.8700 – 0.8750 area when there is a bearish reaction.