Tuesday, 22 November 2016

EUR/GBP Is Retracing




After EUR/GBP broke below the support at 0.8630 which coincides with the (MA)89 indicator on the daily time-frame the pair continued slowly moving to the downside for the past several days. Yesterday, however, it reached a support at 0.8500 and after a short period of sideways consolidation during which it formed several spinning top candlesticks on the four-hour time-frame it bounced off that level and started climbing. Currently the pair is testing the resistance at 0.8550 – 0.8560 and a breakout above those levels could lead to a further move to the upside towards 0.8630, which from a support level will have turned into a resistance one.

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