EURGBP Analysis & Trading Plan - 7 August 2024 - By Vladimir Ribakov

Is euro pound a sell, a buy, maybe sell and then a buy? Let's take a look on the charts. The daily chart completed a fantastic bullish convergence after a bullish divergence when the market made lower lows and the MACD made higher lows. The price makes higher highs and the MACD histogram makes higher highs. And as that happens, the 4-hour chart makes 3 higher highs, higher lows to maintain or create a bullish price structure. But at the moment, we are right at the overbought conditions. When the MACD creates a new peak and extreme levels, extreme divergence, RSI creates overbought over the level of 80. I do expect on a short term the pair to make some bounces, but after the bounce is complete and as long as these Fibonacci levels hold, the Fibonacci you see on the chart. I would be expecting to see the pair pushing again upside.