EUR/GBP Buy Trade Idea – June 5th 2020

The EUR/GBP is on a current corrective down wave. This could be providing a good buying opportunity in the medium term. But considering that it is Friday, perhaps it would be best to wait until Monday opening to look for the buying opportunity.

Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.

This analysis was done on MetaTrader 4.

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Trade Idea Details:

EUR/GBP symbol

Type: Bullish

Key support levels:0.8865, 0.8900

Key resistance levels: 0.9000, 0.9055

Price Action: on the daily chart we can see a massive resistance which was formed near 0.8820. This is a 76.4% Fibonacci retracement level applied to the last major wave up. The resistance has been broken and prie broke above it with confidence, under the heavy trading volume. Although during the past few weeks price has been consolidating and established yet another support near 0.8900 psychological level. So far, this support area has been strongly defended by bulls, which means that the uptrend is likely to continue.

The upside target is seen near 0.9155 area, which is confirmed by two Fibonacci retracement levels. Both of them applied the final waves up, major wave, and minor wave. 38.2% and 76.4% Fibs meet together at the 0.9160 resistance level, which is highly likely to be profit-taking for the bulls in the medium term.

EURGBP Daily Chart Jun 5th 2020

Moving on to the 4-hour chart, there was a clear rejection of the 200 Exponential Moving Averages, making a 0.8865 level strong support. But, spike below this price can be expected, prior to the continuation of the uptrend. The all-in-all trend is bullish and price should be moving upwards to meed the 0.9155 resistance corresponding to the uptrend resistance trendline.

EURGBP 4hour Chart Jun 5th 2020

Potential Trade Idea:

The strong buying opportunity is presented while the price remains near 0.8900 psychological support. The hard stop loss can be placed at 0.8800 psychological support, with the profit-taking at 0.9155.

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Muhammad Awais

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