FxWirePro: EUR/GBP forms 3-white soldier pattern to evidence further surge, don’t get bear trapped as robust volumes conform to bull trend

3 white soldiers pattern is traced out on weekly charts this pattern bullish in nature to lead extensive bullish tendency, the same pattern was spotted out a couple of months ago, now see their bullish effects on monthly graphs.

This pattern appeared with clear bullish convergence from the leading oscillators, current prices spike above MA curves.

RSI and Stochastic are converging to the on-going upswings while MACD is also showing bullish crossover on both weekly as well as the monthly graph that is a signal for on-going uptrend continuation.

One can also observe massive volumes formation which is conformity to the uptrend both weekly as well as monthly graphs.

Since the current prices on monthly charts are testing resistances at 78.6% Fibonacci levels, so the bears can wind their horns in the short run.

The bears lined up ahead of next week’s ECB monetary policy, so any dips are deemed as momentary due to the economic event, whereas any break-out below 7WMA should be a cause of concern for southward targets.

Hence, we would maintain our long-term bullish view on this pair as it is likely to break out the resistance at 0.8390 levels as there are more favourable signals to evidence so.

Hence, the long-term investors can eye on longs in mid-month futures for targets of 180-200 pips with the stiff stop-loss at 0.8090 levels.