EUR/GBP May Continue Falling

Last Friday EUR/GBP formed a distinct hanging man candlestick at the resistance at 0.8840 on the daily time-frame and the sharp move to the downside today came as no surprise. The pair may even be breaking out below the support of the (MA)89 indicator on the same time-frame at 0.8795. If there is indeed such a breakout there will probably be a further move to the downside towards the next target, which is likely at 0.8740. A breakout below that level could lead to another drop towards the last low at 0.8680.

Obviously, the move to the upside will probably continue in case of a breakout above the last high, which is at 0.8840.

EUR/GBP May Continue Falling

It is obvious that EUR/GBP has been consolidating sideways for quite a long time now, ever since the pair reached a high at 0.9305 back October 2016 and bounced off from it. For all this time the pair has reached that high just once more – in August last year and it bounced off from it again, forming an obvious double top on both the weekly and monthly time-frames. Despite that double top there has not been a significant movement to the downside below the aforementioned sideways consolidation and the pair is still above the (MA)89 indicator on the weekly time-frame, as it has been since its initial rally all those months ago. 

It has now, however, finally reached that indicator at 0.8660 and it is testing that support. The question is whether it will be able to break out below it. If it does there will probably be a considerable move to the downside, but if it bounces off from it the sideways consolidation will obviously continue for now.

EUR/GBP Continues Consolidating

The long-term sideways consolidation of the EUR/GBP pair continues, but that said, the pair is currently at something of a crossdroads. EUR/GBP reached a low at 0.8665, which coincided with the (MA)89 indicator on the weekly time-frame and bounced off from it, forming a clear doji candlestick at that level on the daily time-frame and a hammer candlestick on the weekly time-frame, then moved to the upside to 0.8800. There the pair formed another telling candlestick, namely a shooting star one, this time on the daily time-frame. This candlestick is indicative that there may be a new move to the downside, likely towards the last support at 0.8865. The pair could continue falling if it breaks out below it, and its next target would be around 0.8600.