Breaking Free: Euro's Ascend Against the Pound
16 October 2023
In today's technical analysis, we delve into the intricacies of the EURGBP currency pair. This European duo has been generating quite the buzz, and for a good reason: we're looking at a compelling buy signal. However, before we get ahead of ourselves, let's take a moment to step back and survey the larger landscape.
It was mid-September when the pair began showing the first inklings of a positive shift. This change in tide became more evident when the price surpassed a red downtrend line. Following this breakout, the currency pair embarked on a noteworthy upward trajectory. Yet, as is often the case in the markets, after a period of growth, there comes a phase of correction. This was the narrative for the first half of October, characterized by a wedge pattern, demarcated by blue lines on the chart.
The impetus for the current buy sentiment stems from a decisive move: the price has breached the upper boundary of this wedge. As the pair continues its upward journey, the immediate target on the horizon is the green zone, hovering around the 0.87 mark. While we're currently in the midst of a short to mid-term buying spree, it's essential to note that the real, long-term buy signal will come into play once the price surmounts the aforementioned green region. For now, though, our sights are firmly set on reaching that green area.