Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up.
This is the 2nd hour in a row eurtry has seen its price head down.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
Given that we see an uptrend on the 20, 10 and 5 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
Btw, similar pattern on correlated pair chfnok if you prefer that one)- upward channel, bouncing off bottom- rsi and macd in bullish area- supported by important area (a)i would buy around 10.96….
Volatility for eurgbp has been contracting over the past two weeks relative to volatility over the past month.
This imputes a buy/sell ratio of 1.55, which is bullish.
As for the rationale, technical traders seem to be citing the appearance of elliott wave and relative strength index technical patterns.
Further confirmation came about as the pair cleared the 200 period moving average early on during today’s european session, whilst also breaking out of it short term falling wedge pattern….
The closest is the 100 day average, which is 16.9 pips away.