FxWirePro: No traces of bearish sentiments in EUR/GBP’s robust bullish trend, spinning top disrupts formation of 3-white soldier pattern – Leverage longs on dips

EURGBP rallies for the day seems to be little edgy but not exhaustive, consequently, forms some bearish candlestick patterns such as gravestone doji, hanging man and spinning top amid the robust bullish trend.

But the rallies have remained well beyond 7DMAs, even if you see any abrupt dips for the day but don't expect dramatic slumps below DMAs as traces of bullish indications still lingering around the corner.

Momentum and trend study divulge that the trend has been absolutely bulls’ bias, never buck the trend is the shrewd strategy, instead, accumulating longs capturing every dip makes the portfolio more optimal.

Most importantly, this bearish stance both in minor and major is backed by the momentum as well as trend indicators (refer daily & monthly chart).

Moreover, we just missed the 3-white soldier pattern which is bullish in nature as result of spinning top pattern popped at 0.8774 levels (refer monthly terms).

As a result, current prices on broader perspectives have gone way beyond 7EMAs on monthly terms, now broken out stiff resistance at 0.9061 levels.

RSI on both time frames evidence upward convergence with the price spikes that signal strength in the uptrend.

While stochastic curves have halted in overbought territory but no convincing %D crossover on daily terms, indicates the strength in robust bullish trend on monthly terms.

MACD – this lagging indicator (on both time frames) has signaled the bullish trend to prolong in further.

Trading tips: On speculative as well as hedging grounds, initiate longs in futures contracts of mid-month tenors to arrest the potential upside risks upto 0.9270 levels or even more than that level, but keep a strict stop loss of 0.9055 levels.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing 134 (which is extremely bullish), while hourly GBP spot index was at -118 (highly bearish) at 11:51 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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