EURGBP Analysis : Bullish Setup + Support & Reversal Zone AheadEUR/GBPOANDA:EURGBPGoldMasterTrades🔍 Overview: This analysis explores a well-developed Mid-Market Cycle (MMC) pattern playing out on the EUR/GBP 8H chart. The price action has transitioned from accumulation to markup, forming a classic cup-shaped recovery structure supported by a parabolic ARC curve. With strong volume contraction, historical interchange zones, and clean breakouts, this setup indicates bullish momentum heading into the next reversal zone. Let’s walk through each component in detail and build the case for this trade setup. 🧩 1. MMC Cycle Framework The chart structure aligns with the MMC (Mid-Market Cycle) model: Phase 1 – Accumulation: From April to late May, price formed a rounded bottom resembling a "cup" — a known sign of smart money accumulation. The downward momentum stalled, and sellers were gradually absorbed by larger participants. Phase 2 – Breakout & Expansion: Early June saw price breaking out of this base, beginning an aggressive uptrend supported by rising structure. This marks the transition to the markup phase of the MMC. Phase 3 – Pullback & Continuation: Price pulled back slightly into previous resistance (now turned support), forming a bullish continuation triangle and breaking out again. A textbook MMC continuation. 🧠 2. Technical Confluences ✅ A. ARC Support Curve The curved support line (ARC) acts as dynamic demand. Price has bounced multiple times off the curve, reinforcing its strength. ARC patterns often signal increasing bullish acceleration, reflecting market psychology as traders gain confidence with each higher low. ✅ B. Interchange Zones The concept of Interchange refers to zones where support becomes resistance or vice versa. This chart features two key interchange levels: First interchange formed after the April high. Second interchange was retested and held cleanly after the breakout. These areas indicate institutional interest, and their successful retests confirm trend continuation. ✅ C. Volume Contraction Volume has been shrinking during the markup, which is counterintuitive but strategic. In Wyckoff theory, this shows absorption of supply — institutions deliberately suppress volatility to accumulate before the next breakout. Once the contraction ends, explosive moves often follow. 🎯 3. Target Zone: Next Reversal Area Price is now heading into a clearly defined resistance zone around 0.87400–0.87500. This level was respected in prior price history (April peak) and may trigger short-term selling or distribution. The chart shows a possible liquidity grab scenario at the reversal zone, followed by a corrective move (mini bearish ABC). 📈 4. Price Projection & Scenarios Bullish Case (High Probability) Breakout Above 0.87500: Triggers a major leg upward. Potential extension targets: 0.87850 (Fibonacci projection) 0.88200 (next higher timeframe resistance) Bearish Case (Short-Term Pullback) Rejection at Reversal Zone: A corrective leg toward the ARC or prior interchange. Ideal re-entry for buyers near: 0.86400–0.86600 zone Or curve retest near 0.86000 🧭 5. Trade Strategy 🔹 Entry Options: Breakout Entry: Above 0.87500 on strong candle + volume. Retest Entry: On dip toward ARC curve or interchange. 🔹 Stop-Loss Ideas: Below ARC line (~0.86000) Below last bullish engulfing (~0.86250) 🔹 Targets: TP1: 0.87500 TP2: 0.87850 TP3: 0.88200 (longer-term swing) 💡 6. Trader Psychology in This Chart This chart represents a controlled bullish structure — a hallmark of smart money participation. Here’s why: The rounding base was methodically built without sudden volatility. Each breakout was followed by healthy retests (no fakeouts). Volume stayed low during markups, reducing retail confidence and allowing institutional loading. The ARC curve reflects increasing confidence and participation — buyers consistently stepping in on higher lows. 📌 Conclusion This EUR/GBP setup is a textbook MMC/ARC structure with multiple confirmations: Smart accumulation Curve support respected Volume and structure aligned Clear next resistance zone Whether you’re swing trading or monitoring for breakout scalps, this is a high-quality setup worth tracking. Be ready to act at the reversal zone, as it will either confirm continuation or offer a lucrative retest entry. 🔔 Follow for More: I post regular MMC, structure-based, and Smart Money trade setups. Drop a like, comment your thoughts, or ask questions below!