The price of EURGBP has been slowly making its way down to the major demand zone. But will the price react here, and will it offer a long opportunity?
We’re going to take a look at EUR/GBP because the price is approaching a major demand zone.
We previously spoke about this happening, and now, the price has been slowly making its way down to the demand zone. We know this because the price turned back in April, inclined significantly between the 0.885 and 0.8460 areas. There are also buyers like big institutions in that area because they are the only ones that can put lots of pressure on the market.
The price has been slowly making its way back down. It has been turbulent because the EUR and the GB Pound have both been weak and strong lately.
The GBP gained strength before losing some. The price then formed a bottom at the 8535 level. I still want the price to drive into the demand zone because when that happens, we usually see a large move away.
The EUR/GBP price formed a large demand zone back in April after we saw a significant turn in the market with a strong bullish momentum. Since then, the price has been slowly making its way down to the demand zone. If the price gets into the zone, we could look for another buying opportunity as this is a strong area where institutions would have been conducting business.
I want the price to drive into the area, form a bullish reversal, and then push back to the upside. Alternatively, if the price moves down and breaks above the recent swing highs at 0.8612, we want to see a change in trend. We could have a breakout from the consolidation, and if we get a retest and some bullish reversal setups, we can then look for further long positions.
Alternatively, we can watch for a change of the daily trend. This will occur if the price breaks through the current swing highs and gives us 2 confirmed closes. After that, we can look for a retest and a bullish reversal pattern.
The risk for the market will be a break below the demand zone. If that happens, we could see some potential downside. However, I’m expecting some moves to the upside because of the demand.
You can try trading with EUR/GBP for as low as $100 when you open a live account. Fast execution, zero commission foreign exchange, and prompt support–that’s the Blueberry Markets experience.