EUR/GBP Is Consolidating at 0.8990

 

EUR/GBP spent the entire last week forming a relatively tight sideways consolidation, from 0.8890 to 0.8990. As a consequence the pair formed a number of candlesticks on the daily time-frame that are a signal for a likely impending move to the downside, namely shooting star candlesticks, a doji one and a hanging man candlestick, as well as one clear hanging man candlestick on the weekly time-frame, all under the resistance at 0.8990. Should those signals for a drop prove valid we could expect a move towards the closest support level at 0.8870, and a breakout below that level could lead to a further drop towards 0.8730, which is the (MA)89 indicator on the daily time-frame.