Short term move to the upside EUR/GBP

#EUR/GBP#

Taking a look at the W chart, we see that we are well into an expanding triangle pattern with a consistent support since late 2016.

Looking at the D chart, we see that the market just made its second touch a the bottom of an ascending channel structure. We have yet to see the second touch at the top of the structure which indicates that the market could continue moving up just a little bit longer. This idea is supported by the fact that we see a well formed descending channel on the 4H chart.

The 4H chart shows that we are well into a descending channel . This channel has formed over the span of 4 months (Sept-Dec) and it was formed after a bullish impulse. This means that there is a 90% chance of this trend continuing to the upside, which will be a big move.

Zooming in further into the 1H chart, We see similar descending channel that seems to be bottoming out. This could mean that the market will continue in a corrective state, or we can begin looking for buy opportunities. Given that the correction happens after a bullish impulse, I think it would be smart to keep eyes peeled for the next phase in the cycle, another impulse.

Overall, I feel confident in my analysis of this market. I am confident that the market will continue moving up in the short term and potentially touch the top of the W structure. However I am also aware of the fact that the market can easily drop from where it is now and break the W ascending pattern structure, in which case we will want to be looking for selling opportunities.