EUR/GBP Is Testing the Support at 0.8855

Because of the presidential elections in the USA and the impending volatility they will cause, today I decided to turn my attention to a pair that is not related to the US dollar, namely the EUR/GBP. This pair has been slowly moving to the downside for nearly a month now, ever since it formed a doji candlestick on the weekly time-frame three weeks ago. That move to the downside might stall, however, as EUR/GBP is still testing the support at 0.8855 and, more importantly, it has formed a hammer candlestick above that level on the daily time-frame. If this candlestick is a valid signal then we can likely expect a move to the upside towards 0.8960 – 0.8970. On the other hand, if the pair breaks below the aforementioned support it will likely continue dropping towards the next major level of support which is at 0.8620 and coincides with the (MA)89 indicator on the daily time-frame.