Technical Traders Eye EUR/GBP Breakout from Classic Wedge Formation
Date: 08 July 2025
Overview
The EUR/GBP currency pair has demonstrated significant technical clarity over the past two weeks, making it a focal point for technical traders. The pair is currently in a steady uptrend, consistently adhering to classical chart patterns, indicating that technical traders are actively engaged in this market.
Current Price Action
The recent price action of EUR/GBP reveals a clear sequence of trend continuation formations. Initially, the uptrend faced a temporary halt due to a pennant pattern. This was succeeded by a wedge formation in the middle of the move, and now a new wedge formation is emerging at the top of the current leg.
Wedge Formation Analysis
Wedges are typically recognized as continuation patterns. In this context, the current wedge setup suggests a potential bullish breakout is on the horizon. As long as the wedge structure remains intact, the momentum appears to favor the bulls.
Trading Signals
A daily close above the upper boundary of the wedge would serve as a technical confirmation and generate a buy signal, indicating a likely continuation of the broader uptrend. Conversely, if the price were to close below the lower boundary, it would invalidate the bullish setup and shift the outlook to a short-term bearish perspective. However, given the strength of the current trend and the characteristics of the pattern, this bearish scenario seems less likely at present.
Conclusion
At this moment, EUR/GBP presents a clean, low-noise technical setup, which is ideal for traders who prioritize structure and discipline in their trading strategies.