EUR/GBP Awaiting Resolution of Intra-session Range

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EUR/GBP Awaiting Resolution of Intra-session Range

The EUR/GBP rang in the new year with a new low, breaking down a multi-month consolidation structure. After the break however, we got a quick pullback, so let’s take a look at this breakout, and the markets attempt to test whether this breakout will extend or become a false breakout.

After a rebound from 0.7750, EUR/GBP started this week with a range roughly between 0.78 and 0.7850. A break above 0.7850 continues the bullish correction but only in the short-term and within the context of a bearish breakout. If the bearish breakout is to remain in play, price should not close back above 0.79-0.7920 area. If it does, then we have a false breakout, and there would be pressure to the upside.

However, if price falls below 0.7790, then we are likely in bearish continuation, with pressure on the 0.7750 lows, and the risk of falling toward the 0.7690-0.77 area, which represent the lows during a long period of consolidation in 2008.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.