EUR/GBP: congestion ahead of the breakout

The EURGBP formed a Barb Wire formation on the 1h timeframe after a pullback from the 4h channel resistance. I prefer the upside from here based on my note posted on 2010/12/06.
Barb Wire pattern, by Al Brooks, is a tight trading range near the EMA with small body bars that “largely overlap and one or more of them have a tiny body (doji)”. Sideways bars with overlap mean that neither the bulls nor the bears are in control. Even though “odds favor a With Trend breakout” the Barb Wire pattern “is notorious for sharp whipsaws and repeated losses for breakout traders”. Quotes from Al Brooks’ book, see my Bookshelf page for reference.

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