Monday, 30 November 2015

EUR/GBP: A Bear Flag?




EUR/GBP failed to break above the resistance at 0.7080 and bounced off that level. It reached the support at 0.7010 on the daily filter chart, formed a doji candlestick and moved to the upside again, so it is very possible that it will attempt to test the resistance level yet again. That said, the pair is forming a rather clearly defined bear flag pattern, so even if it reaches the resistance at 0.7080 I would be on the lookout for any candlesticks that indicate a new move to the downside. Either way, for now there is not signal that the bearish trend is over.

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