Looking at the monthly chart for EURGBP one can see that Price over the past couple of months has found support at a MAJOR long term support & resistance level (0.77393). We had an Inverted Hammer formation in October and Novembers bull candle helped strengthen that formation. So where to for Price looking ahead.
Well, a return to 0.82247 could very well be the case BUT in order for that to happen we need to see Price breaking out of this consolidation range on the weekly timeframe. We've not see the current LT resistance above at 0.80415 being broken above and that would need to happen (Weekly close) in order for us to consider looking long. Daily chart shows Price attempting the current resistance level which is the 200sma too.
So - trigger alert for break of the 0.80415 (look for a weekly candle close higher) level to consider going long otherwise we could see further consolidation with a return to test September lows at some stage
