EUR/GBP marks a medium term decline
Recent developments on the EUR/GBP currency exchange rate have pressed for a review of the pair. The review is being done, to map the larger scale situation, which previously was not fully accounted for.
It can be noticed that the recent decline of the Euro is a part of a speculated channel down pattern. The reason for it still being theoretical is the fact that the upper trend line has not been confirmed.
The pattern is the next one in line to guide the pair’s movements in the medium term. It is most likely going to retreat down to the weekly S1 at 0.91 mark and await there until it meets the support of the dominant ascending pattern.
It can be noticed that the recent decline of the Euro is a part of a speculated channel down pattern. The reason for it still being theoretical is the fact that the upper trend line has not been confirmed.
The pattern is the next one in line to guide the pair’s movements in the medium term. It is most likely going to retreat down to the weekly S1 at 0.91 mark and await there until it meets the support of the dominant ascending pattern.
Comment:
Comment:
Due to a recent fundamental release of data in the United Kingdom the EUR/GBP currency exchange rate suddenly dropped down to the monthly S1, which is located at the 0.8988 level.
During that move the small and medium scale patterns were broken, as the sudden fall occurred almost exactly at the crossroads of the lower trend lines of the mentioned patterns.
However, this move could have been expected, because the pair had already bounced off the resistance line of the most dominant channel down pattern just above the 0.93 mark.
It can be expected that new short and medium term patterns will soon form.
During that move the small and medium scale patterns were broken, as the sudden fall occurred almost exactly at the crossroads of the lower trend lines of the mentioned patterns.
However, this move could have been expected, because the pair had already bounced off the resistance line of the most dominant channel down pattern just above the 0.93 mark.
It can be expected that new short and medium term patterns will soon form.
Comment:
Almost all of the various timeframe patterns on the EUR/AUD pair are aimed down. However, there is one exception. That is the most dominant pattern, which has the shape of an ascending channel pattern, and the latest approaching of this pattern has pressured for a review of the pair.
In general the various descending patterns have guided the currency exchange rate down to a zone near the lower trend line of the most dominant channel. Most likely the trend line will be reached soon. Namely, by the end of this week.
Although, the pair still has to pass the support of the weekly PP at the 1.4906 level. Meanwhile, traders should watch out for the support of the weekly S1 at the 1.4844 level.
Almost all of the various timeframe patterns on the EUR/AUD pair are aimed down. However, there is one exception. That is the most dominant pattern, which has the shape of an ascending channel pattern, and the latest approaching of this pattern has pressured for a review of the pair.
In general the various descending patterns have guided the currency exchange rate down to a zone near the lower trend line of the most dominant channel. Most likely the trend line will be reached soon. Namely, by the end of this week.
Although, the pair still has to pass the support of the weekly PP at the 1.4906 level. Meanwhile, traders should watch out for the support of the weekly S1 at the 1.4844 level.
Comment:
Sorry.
Added the wrong text from the evening reviews.
The common European currency recently rebounded against the lower trend line of a dominant pattern against the British Pound. However, that does not mean that a surge is set to occur in the short term.
The pair recently met with the resistance of the weekly PP at the 0.8897 mark, which has stopped the rebound. Due to that reason and the fact that the 55-period simple moving average is moving in on the rate from the upside near the 0.8976 mark, another confirmation of the lower trend line of the dominant pattern can be expected.
On the other hand, the rate might break the PP and surge until it encounters stronger resistance near the 0.8990 mark.
Added the wrong text from the evening reviews.
The common European currency recently rebounded against the lower trend line of a dominant pattern against the British Pound. However, that does not mean that a surge is set to occur in the short term.
The pair recently met with the resistance of the weekly PP at the 0.8897 mark, which has stopped the rebound. Due to that reason and the fact that the 55-period simple moving average is moving in on the rate from the upside near the 0.8976 mark, another confirmation of the lower trend line of the dominant pattern can be expected.
On the other hand, the rate might break the PP and surge until it encounters stronger resistance near the 0.8990 mark.
Due to that reason an approach of the dominant support is to be expected sooner than previously.