EUR/GBP dropped after reaching the 0.8618 high and now is retesting the Falling Wedge’s resistance, the downtrend line. Validating the breakout could activate this major reversal pattern.
The bias is bullish despite the current decline. It could start increasing anytime after some poor UK data reported earlier. The United Kingdom GDP, Industrial Production, Manufacturing Production, Construction Output, and the Index of Services have reported worse than expected data.
Technical Analysis!
EUR/GBP has found resistance around 0.8615 former high. Its false breakout with great separation signaled a potential drop. Now it retests the downtrend line and the weekly pivot point (0.8484).
Staying above these levels could bring a new leg higher soon. Only dropping and stabilizing under these levels could invalidate the bullish scenario.
An important upwards movement could be activated and confirmed if the pair jumps above the 23.6% (0.8598) level.
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