EUR/GBP: Massive Bullish Storm; All Of Sudden In The Pair

Novemver 16, 2018

 

By looking at the daily chart we can see that  EURO is the base currency in the pair and jumping up in all the pair whereas GBP is getting weaker in all the pairs. This pair is known as fabulous hedged pair so it has got momentum towards upside. Earlier pair was falling down with purely bearish momentum and it marked a low of 0.8654 level in the current week.

 

After arriving at that level we have a rickshaw man doji candlestick along with a bullish marabuzo candlestick which is providing us bullish signal and the way bulls are reacting it seems like they will test the 0.9100 level once again. By witnessing the daily chart we can see that bulls have taken the charge and they are not going to stop in early phase. The recent candle is full of bullish momentum and indicating further bullish signal and presently pair is trading above all major and minor EMA lines.

 

EUR/GBP rallied hard by 180 pips on Thursday, making for one of the biggest session’s gains in recent history. The move comes as the U.K. Prime Minister Theresa May’s leadership has been called into question following the Brexit Secretary Dominic Raab cabinet minister Esther McVey resignations less than just 24 hours after she PM May had received the approval of her cabinet for a draft Brexit plan. This has increased the chances of a leadership challenge and a ‘no-deal’ Brexit.

 

Odds are in favor of bulls. The intraday bias remains bullish on the pair as long as pair is trading above 0.8800 level on the daily chart. A bullish crossover on MACD indicator is supporting the bulls.RSI is also favoring the bulls from positive territory.

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