Thursday, April 07, 2016

EUR/GBP Is Close to a Reversal

After five months of a powerful upwards trend the pair finally reached the resistance level at 0.8100, visualized on the screenshot with the upper band of the Bollinger Bands indicator on the monthly time frame. That band is usually a very strong resistance level, which makes me think that the pair is close to a reversal and beginning a correction to the downside.

That said, I do expected the upward move to continue for another 100 pips or so – which is what is left to the trend line on the monthly time frame (the red line).

In conclusion, I think that EUR/GBP reaching 0.8180 will be turning point after which we will see the pair start moving to the downside.