EURGBP – Bearish Head and Shoulders forming

Monthly: Since posting large nett losses in September 2017 (-395 pips) the cross has moved sideways. We can note spikes for the last 10 months highlighting indecision. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending. A large wedge formation offers a long-term bearish bias. A break of support at 0.8764, and the measured move target is 0.8300

Weekly:  The corrective rally stalled close to the 61.8% pullback level of 0.9045 (from 0.9307-0.8619). Week 27^th August posted a bearish Outside Week, often an indication that the corrective rally has come to an end. However, buying last week also posted a bullish Outside week offering a mixed immediate outlook.

Daily (1): We have completed a bullish 5-wave pattern (Elliott Wave). The subsequent selloff stalled at the trend of higher lows (0.8872). Last week’s Marabuzo level is located at 0.8923 and could be a temporary barrier today.

Daily (2): Looks to be forming a bearish Head and Shoulders pattern. A break of support and the measured move target is 0.8600 (taking us through the previous swing low at 0.8618)