EUR/GBP Bearish Pennant For Fresh Shorts

Nenad Kerkez

The EUR/GBP has formed a bearish pennant at resistance and this might be the time to watch for short trading opportunities. 0.8400-20 is the zone for shorts – POC, H4 camarilla PP is making a confluence with the upper pennant trend line and the price might reject 0.8340 and 0.8295. If we see a strong momentum below 0.8295 or 4h close below it then 0.8240 is the final target. At this point traders should be focused on POC rejections towards 0.8340 first as we can spot a support there (pennant lower trend line, L3).

If the price closes above 0.8445 the scenario will be negated and the pennant will be dismissed.

EURGBP 4 Hour Chart

EURGBP 4 Hour Chart

Source: admiralmarkets.com

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