EUR/GBP Technical Analysis: Overshadowed by Rare Bearish Pattern

EUR/GBP Technical Analysis

  • As expected, EUR/GBP fell flat on its face after a false breakout to the upside
  • Numerous bearish signals hint the dominant downtrend could resume ahead
  • Support at a range between 0.87237-0.87182, resistance is August trend line

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As anticipated, the bearish warning signs in EUR/GBP prices ended up preceding a reversal following a false breakout above a descending trend line from August. The fundamental backdrop behind an aggressive decline in the Euro against the British Pound appeared to be as a result of positive Brexit updates from the UK. Following these developments, EUR/GBP seems poised to resume its dominant downtrend since August.

Looking at the weekly chart below, the pair is on course to forming a quite rare falling three method bearish candlestick pattern. Progress to the upside in the pair was impeded by a rising range of support from April (red parallel lines below) which reestablished itself as new resistance. Confirmation

Article source: https://www.dailyfx.com/forex/technical/home/analysis/eur-gbp/2018/11/02/EURGBP-Technical-Analysis-Overshadowed-by-Rare-Bearish-Pattern.html