Bullish rally which remains since the beginning od April was finished. Last week EURGBP crashed support at 0.8000 and today next support at 0.7920 was also broken. Nearest goals for supply are located at 0.7880, 0.7840 and 0.7770. Why such reaction occurred?
Answer we can find at time-frame weekly. I wrote about such possibility in analysis of April 4, where I pointed 0.8150 as a level where rebound should occur. At this moment we can’t confirm that new downward wave has started.
Now there are two scenario:
- Price will move up and after consolidation between 0.8110 – 0.8150 downtrend line will be crashed.
- Price will fall to 0.7770 and next to 0.7700 and after that lowers levels from 2015 will be tested.
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Time-frame H4
Time-frame W1
