News from weekend that UK will begin Brexit procedure in half a year influenced pairs connected with GBP. In case of EURGBP it started with huge bullish gap, breaking August peak and reaching high at 0.8745. The last time EURGBP was so high in July 2013 and back then it started two years of declines.

Will the bulls manage to break this strong resistance? The question remains open. We should watch this pair carefully. If resistance at 0.8740 will be broken the nearest target for the gains will be at 0.8860, but this one is quite weak. Next one will be much stronger, it is a high from 2011 at 0.9050. Bearish correction can lead the price back to 0.8370/40 area or even lower to 0.8170.

2016-10-03_analiza_eurgbp_d1-1

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Author of worldtrader.pl blog and big supporter of technical analysis. Active medium-term trader. In his analysis uses classical charts, price action as well as harmonic patterns and Elliott Waves. In trading he always tries to take into account two points of market's view, in accordance with the principle that each transaction may be attractive both for the demand and supply traders.