EURGBP: Bullish White Swan and Shorter Term Retracement

We have been receiving a lot of requests about EURGBP analysis. We have shared a triangle breakout pattern last week. The trade idea hit the targets as predicted. As seen on the H4 Chart timeframe, the pair completed a Bullish White Swan harmonic pattern at D – 0.89380 – and ended the week at 0.89570.

The pair tested the ascending trendline and reacted. We can not talk about a trend reversal as long as the pair holds above the trend line.

However, on the H4 chart, EURGBP broke below the EMA 50. The midterm trend turned to Bearish.

Based on the Bullish White Swan Harmonic pattern, we may see a retracement towards EMA 50 where the price meets Fibonacci 38.2% retracement of CD leg at 0.89980. But, it needs to break above 0.89720 resistance first.

After this retracement we predict the price continues to its bearish movement. After the possible breakout of the trend line -estimated breakout level 0.89700 – 0.89600 – , the next target will be 0.88600.

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