Forex Trading Library

EURGBP – Broken the wedge to the downside

0 365

Monthly: We have broken the wedge formation to the downside. The pattern has a measured move target of 0.8303. A bearish Engulfing candle was posted in January. The corrective rally was sold into in front of the reverse trend line resistance at 0.8901

Weekly:  Rallies close to the 61.8% of 0.9044 (from 0.9606-0.7621) Fibonacci retracement level were sold into. Previous support has now been broken. Although intraday signals for sentiment are at oversold extremes, there is no clear indication that the downward move is coming to an end. We look to sell into rallies. Bespoke resistance is located at 0.8660

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