A promising bullish setup is unfolding on the EUR to GBP currency pair. The key development occurred yesterday with a false breakout below a major horizontal support, marked in blue on the chart. This brief dip below support, highlighted by an orange rectangle, was quickly reversed, signaling buyer strength and a potential bullish reversal.
Following the false breakout, the pair retested the blue support area, and the retest held firmly, triggering a bounce to the upside. The reaction suggests that the support remains valid and that the dip was likely a liquidity sweep—a common move before a reversal.
At this point, the price is advancing and showing solid momentum. However, there are two key resistances ahead: both are purple downtrend lines, and a breakout above them would serve as a major long-term buy signal.
What makes EUR/GBP even more attractive today is its relative safety in terms of fundamental risk. The pair is not directly influenced by ongoing trade wars or today’s Fed interest rate decision, which makes it less exposed to unexpected volatility.
All eyes should now be on the closing price. A close above the purple trendlines would confirm bullish dominance and offer a clear technical entry for traders looking for long setups.