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    EUR/GBP: moving higher after basing at major support

       
    The monthly chart shows the pair at the base of a falling channel which looks to provide substantial support and could possible lead to a major recovery-move higher.

    The exchange rate also formed a hammer reversal candle-stick in March at the level of the channel line and the 200-month MA – another bullish sign. This was followed by April, which was an up-month. Now the pair is pushing up against support-turned-resistance from the 200-month MA at 0.7380.

    If there is a clear break above the R1 monthly pivot at 0.7420, including a 20-point margin, so above 0.7440, that should indicate a continuation higher, up to an initial target at 0.7531.

    A low risk-reward opportunity is also presenting itself right now after prices which had broken above resistance at 0.7375 pulled-back into it, since there is a possibility they could use the resistance-turned-support level as a launch pad for the next leg higher.
    EURGBP06b

       
    The monthly chart shows the pair at the base of a falling channel which looks to provide substantial support and could possible lead to a major recovery-move higher.

    The exchange rate also formed a hammer reversal candle-stick in March at the level of the channel line and the 200-month MA – another bullish sign. This was followed by April, which was an up-month. Now the pair is pushing up against support-turned-resistance from the 200-month MA at 0.7380.

    If there is a clear break above the R1 monthly pivot at 0.7420, including a 20-point margin, so above 0.7440, that should indicate a continuation higher, up to an initial target at 0.7531.

    A low risk-reward opportunity is also presenting itself right now after prices which had broken above resistance at 0.7375 pulled-back into it, since there is a possibility they could use the resistance-turned-support level as a launch pad for the next leg higher.
    EURGBP06b


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