The euro is in an uptrend against the British pound since July 2015. However, the trend is stalling in a triangle-like consolidation since October 2016. The current form of the pattern lets traders conclude in favor of its validity. It can now be used as a breakout trade setup.
You can see the triangle delimited with the yellow lines on the chart screenshot below. The horizontal cyan line shows the breakout entry point; it is placed at 10% of the triangle’s base width above the upper border. The horizontal cyan line shows my potential target level; it uses 100% of the same distance. I will place my stop-loss order at the low of the breakout candle unless it trades mostly outside the pattern — then I will use the low of the previous candle. I will cancel the setup in case of a bearish breakout. You can see a full-size chart by clicking on the image:
I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/GBP pattern. You can trade it using my free Chart Pattern Helper EA.
If you have any questions or comments regarding this ascending triangle on the EUR/GBP chart, please feel free to submit them via the form below.
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