EURGBP is a pair which is 80% inversely correlated to the GBPUSD. We look at the base/quote pair in this pair.

- Market structure: Market structure on EURGBP is bullish but yet, it has bottomed out. At this level of support, we have daily and weekly support as well. This overlap strengthens the region. This price at this level is 0.8505 which is a good are to go long. Apart from this, we have a clear clean traffic of price action to the left which supports the move up.

- Trendline: We currently have a descending trendline which has been tapped by the prices. Being an off session today on a Friday, we may not be able to see the breakout of this trendline. But if this trendline is broken, we will wait for the retracement to go long. On the other hand, at the support level, we have a trendline which is forming a divergence. We will later see what the market does at this level.

- Retracement: The golden retracement level of 75-78.6% remains in confluence with the support area. After the trendline breakout buy has been confirmed, buying at the retracement level will be optimal. With this, we will have retracements as the third confluence.

- EMA's: Both EMA’s are bearish. The EMA’s have had a death cross as well. Although the EMA’s present a bearish picture, we still anticipate market retesting the EMA 200 as its only been retested once after the breakout.

- RSI/CCI: RSI is at 44 at a bearish region whereas, CCI is at 75 which is a bullish region. RSI might make another low towards 30 at which point, market will be retracing at the retracement level. At this area, CCI might still be bullish.

The trade on EURGBP is an optimal one once we witness the trendline breakout buy and market retraces back at the 75%.

EURGBP bottomed out

Jul 30 2021

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