Wednesday, November 01, 2017

EUR/GBP Will Probably Continue Depreciating

EUR/GBP is moving in a downward trend, forming three bearish waves.

From 29th August 2017 (0.93061) to 27th September 2017 (0.87459) the pair has fallen with over 550 pips, after which it has successfully formed a pennant, which is especially obvious on the D1 time frame, and if the pair reaches its limit it should fall to 0.8350.

At the moment, however, EUR/GBP is in a support zone, also especially obvious on the daily time frame and I think that in order to break out below that zone it will need time and a correction to the upside.

Should it break out below this support zone the next support zone should be around 0.8600 – 0.8560.