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.
Very useful information! Thanks.
ReplyDeleteThanks for the useful point. I"ll be waiting for a reversal to close the position and to take the profit
ReplyDeleteIt could retrace from that point.
ReplyDeleteGreat analysis, thanks!
ReplyDeleteGood analysis, I will keep eye on the pair.
ReplyDeleteGood post.
ReplyDeleteGood post!
ReplyDeleteInformative, thanks.
ReplyDeleteInteresting levels to be watchful of, thanks for the info.
ReplyDelete