EURGBP – Technical Analysis, W1

The EURGBP currency pair dropped last week. This significant decline has stopped at the support area set by the broken neckline in the reversed head and shoulders formation.

Looking at the wave structure of the whole upward movement, this fall could be only the corrective wave four. So in the near future we can expect another upward movement as the wave five with the resistance at the 0,8940 and 0,9090 (target from SHS formation).

Only the return below the (green) trend line could change the sentiment from bullish to bearish.

Daniel Kostecki

Technical Analyst of Financial Markets

[email protected]

X-Trade Brokers DM S.A.