To start today’s Finlogix analyses, I am including EURGBP Forex cross pair.

I have not made one before so this will be the first one.

There are no both Europe and UK major economic reports this week.

Assessing EURGBP’s high timeframe candles:

Yearly Candle: Small Red Candle with a Longer Tail Wick

Weekly Candle: Green Body with a Longer Head Wick

Continued bearishness in the yearly candle. I think the Euro will continue to weaken against the Pound long term.

Both the daily and monthly candles are forming Red Doji yet the current weekly is in a Green Body which is actually a bullish engulfing pattern from last week’s red.

This pattern is creating a continued sideway price action after a strong move down from November 2023 to January 2024.

Since then, EURGBP is trading in side ways for two months. Ranging tightly from 0.8578 high to 0.8498 low.

The current price levels are ready to re-test the upper range resistance.

We can see a good bounce from the lower range which got re-tested last Friday resulting a moving up this week thus forming the bullish engulfing pattern I’ve mentioned earlier.

If current consolidation (depicted in the blue box ) favors a PoD (point of decision) to the upside, strong chance of testing the upper range resistance.

Although hovering in a premium array already and assuming that the EURGBP hit its weekly peak rejected from last week’s high, I speculate a pullback first towards its discount array.

This is where I like to open a long position targeting a complete break out from its upper range as take profit .

However, if opposite direction occurs, I safely set the stop loss on the lower range support. This is where I can see a complete break down and Euro will be heavily sold against the Pound.

A side way pattern has awaiting breakout traders on its ranges that will intensify momentum but I will engage within its territory.

EURGBP Intraday Analysis and Trading Plan For March 14, 2024

Mar 14 2024

1