eurgbp forecast: Trendline Breakout & Retracement Setup

weekly TF

EUR/GBP forecast Weekly Chart Analysis

Hi, traders Let's examine the EUR/GBP pair on a weekly basis, where a bullish breakout and retracement pattern is developing.

Important Points to Note:
Trendline Breakout:

A significant descending trendline has been broken by the price, suggesting a possible trend reversal.
A change in market structure (higher highs/lows) corresponds with the breakout.
Phase of Retracement:

The pair is currently retracing after breaking out in order to test the trendline as support (the grey area on the chart).
For bullish traders, this pullback presents a possible entry opportunity.

daily TF

Daily & H4 Timeframe Confirmation

Daily Chart: A crucial support area where buyers could intervene is represented by the grey zone (highlighted in your image).

The buy setup would be strengthened by a bullish reversal candlestick (such as an engulfing or hammer) in this zone.

H4 Chart: To verify entry, watch for bullish structure shifts (such as the breaking of a downtrend line) or momentum indicators (RSI > 50, MACD crossover).

Trigger for Entry:

Purchase when there is a bullish structure shift on the H4 chart or a confirmed bounce from the grey zone (daily support).

Target Prices:

Short-Term: Weekly breakout level retest.

Mid-Term: Previous swing highs or Fibonacci extensions (see chart).

Stop Loss:

To reduce risk in the event that the retracement deepens, place stops below the grey zone.