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Short-term trading idea FX EUR/GBP - bull speculation: expected breakout from the 2-2 channel

Trading opportunities for the currency pair: At this very moment, the price is located within the 2-2 channel. A beautiful triangular structure has formed from the high at 0.8531. According to my prediction, the price will exit this range and subsequently grow as far as the upper boundary of the 1-1 channel at 0.8590. The case for growth will disappear if the daily candlestick closes below 0.8325.

Background:

The previous idea on this pair came out on the 27th of February, 2017. At the time of publication, the Euro was trading at 0.8467. Cycles indicated at the time that the price should have restored to 0.8600, followed by a slide to 0.8340 by 20/03/17. The Euro surpassed 0.8600 by 187 pips. This growth phase continued until the 14th of March, although by the 14th of April, the price had fallen below its target of 0.8340 to 0.8297.

Current situation:

Growing political risks in Europe have provided support for the British pound. Tension has subsided since the end of the French presidential election. Emmanuel Macron has now been sworn in as the president of France and the exchange rate has restored to 0.8531.

EURGBP daily chart. Source: TradingView.

The EUR/GBP pair closed up on Friday. The single currency appreciated against the greenback and sterling after the release of US statistics. The price is currently located inside the 2-2 channel. I'm forecasting a breakout from this range, followed by growth to the upper boundary of the 1-1 channel at 0.8590.

Former British Prime Minister Tony Blair has signaled his return to politics, launching an active campaign against Brexit. He warned that Northern Ireland may begin to reconsider its membership of the United kingdom due to the country's exit from the EU. A snap parliamentary election is being held in the UK on the 8th of June. The pound will likely be feverish, and so could deviate from  my proposed scenario, but that's the market for you. We should be prepared for any potential outcome.

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