FX Reversals: EURGBP Morning Breakout
- The EURGBP attempts to breakout over .7123
- Today’s range measures 39 pips
- R3 resistance is found at .7106
EURGBP 30Minute Chart
(Created using Trading View Charts: Click on the chart below to zoom in; after zooming in, press the play button towards the right to set the market in motion)
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The EURGBP is trading higher this morning with price action breaking out to new weekly highs above the pair’s daily R4 Camarilla pivot. Today’s R4 pivot is found at .7123, and price first attempted to break through this value on mixed GBP Retail Sales data. Since the initial move, price has retraced back towards this value of resistance. As previous resistance has become new support, bullish traders may continue to keep their bias if prices remain above this value. Bullish targets can begin with 1x extension of today’s 39 pip trading range towards .7162
In the event of a false breakout, traders will look for prices to return back inside of today’s trading range. R3 resistance, as seen in the chart above, is found at a price of .7106. If the EURGBP falls below this point, traders will look for prices to test values of support, including today’s S3 pivot point found at .7070. Conversely a decline under the S4 pivot at .7053 would suggest a broader bearish reversal is in play. In either scenario, this would suggest an end to the current bullish EURGBP momentum, while invalidating this morning’s breakout.
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---Written by Walker England, Trading Instructor
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