EUR/GBP buy signal: profiting from a weakened Pound trend

September 19, 2023 05:25 AM PDT | By Invezz

EUR/GBP buy signal: profiting from a weakened Pound trend — Image source: Invezz

Trade idea summary

Buy/sell asset: Buy EUR/GBP
Entry price: 0.86059
Stop loss: 0.85480
Leverage: 3x
Take profit 1: 0.86360
Take profit 2: 0.86680
Take profit 3: 0.87007
Timeframe: 1-2 weeks
Maximum profit: 3.3%
Maximum loss: 0.75%

EUR/GBP chart and technical analysis

EURGBP is recovering from a long-term bearish trend and the price is making new higher highs. The trend has turned bullish after the price made 3 consecutive higher highs.

Recently price closed above the previous high of around 0.86059 which also acted as a strong resistance level. I am expecting the price will retrace back to 0.86059 for correction before heading for new highs.

The 0.86059 price level will now act as a strong support level and will push price upward. Another confirmation for this trade is the 0.786 Fibonacci retracement level around the same price.

EUR/GBP fundamental analysis

There is no high-impact news on Euro or Great British Pound today. However, inflation rate data will be published on GBP tomorrow which can create fluctuations in the market.

Higher inflation than expected will potentially weaken GBP and lower inflation will strengthen Pound.

EUR to GBP trade setup key takeaways

EUR/GBP will possibly go up as predicted as the trade has been sent after multiple confirmations.
The entry price and stoploss have been set at secure price levels with a high probability of winning.
I will be watching this trade closely when the inflation data is published tomorrow.
Good luck!

The post EUR/GBP buy signal: profiting from a weakened Pound trend appeared first on Invezz.

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