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Where my range traders at?

I’ve got this simple EUR/GBP technical setup on my radar for today, so check it while it’s fresh!

EUR/GBP: 4-hour

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart by TradingView

Don’t look now, but this pair is testing the very top of its range on the 4-hour time frame!

Will euro bears defend the ceiling? Or are we about to see a breakout soon?

Technical indicators seem to be favoring a bullish scenario, as the 100 SMA is above the 200 SMA to reflect upside pressure.

If EUR/GBP busts through the top of the range, we might be in for a rally that’s the same height as the range. That’s around 250 pips yo!

Stochastic is also reflecting the presence of bullish vibes, as the oscillator already pulled higher from the oversold region. It has plenty of room to climb before indicating overbought conditions, so price could keep following suit.

I’m not seeing any major reports out of the U.K. and the eurozone in the next few hours, but I’ve got my eyes on the monthly U.K. GDP release due later in the week.

Don’t forget that market watchers are pretty wary of the cost of living crisis in the U.K, as the drop in consumer spending power likely dampened overall economic activity recently.

If pound bears are eager to position ahead of this major report, EUR/GBP could enjoy big moves leading up to the actual release.

Better take the average EUR/GBP volatility into account when setting entries and exits!

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