Meanwhile, in regards to the short term, the pair is squeezed in between the resistance of the 50.00% level at the 0.8831 level and the weekly PP together with the 55-period just above the 0.88 mark.
It can be expected that the rate will break to the upside and reach for the resistance cluster located near the 0.8860 mark.
During the previous review of the EUR/GBP pair our analysts predicted a rebound on a large scale. However, the rebound occurred much earlier than expected. This has provided the opportunity to adjust the long term support line and start observing the rebound.
In general the pair has formed a small scale channel up pattern. In the near future the pair should once more rebound against the channel s support and begin an approach of the weekly and monthly PPs, which are located above the 0.8930 mark.
That resistance should be broken in accordance with the larger scale situation.
Due to some new developments on the EUR/GBP currency pair, a review of the technical charts has been done. The need arose due to a junior pattern being broken and the reveal of a medium term channel down.
In general, the previously active junior pattern was broken after a decline, which followed the encounter of the resistance of a medium scale descending channel. As a result the rate retreated down to the lower trend line of the massive scale triangle pattern.
In regards to the near future, the pair is most likely going to rebound and surge up to the combined resistance of the weekly PP and the 200-period SMA.
The previous review of the Euro against the Pound pair concentrated on the fact that a large scale channel down pattern had guided the rate down to the support line of a massive scale triangle pattern. However, that support was broken.
The rate declined down to the weekly S2 at the 0.8733 level before making a rebound. The rebound ended at the 0.8940 mark, where a strong resistance cluster made up of R1s and the upper trend line of the channel are located at. As a result the pair has begun its decline and in the short term is likely going to retreat down to the monthly PP at 0.8883 level.
The common European currency is trading against the British Pound in rather complicated patterns. The reason for that is the still visible activity of a previously broken massive scale support line.
Meanwhile, the pair is descending in a dominant channel down pattern, in the borders of which there is a medium channel down pattern. The pair recently bounced off against the medium scale channel’s lower trend. As a result of the rebound an ascending channel formed.
In the short term the pair is about to get squeezed in near the 0.8850 mark. That squeeze in should result in a breakout either to the resistance of the dominant channel down or a breaking of the junior pattern, which would result in a fall down to the 0.8760 level.
The pair recently reached the upper trend line of a dominant channel down pattern. The move was expected and it resulted in a bounce off, that has guided the pair lower. Most recently the currency exchange rate reached the combined support of the weekly R1 and the 200-period SMA near the 0.89 mark.
In the short term it can be expected that the pair will rebound and move for the resistance cluster near the 0.8940 level.