Last half year EURGBP spent in consolidation between support close to 0.8330 and resistance next to 0.8858. As we can see on monthly graph, the wick of the previous (June) candle is testing the upper band of this consolidation.

EURGBP Monthly

The mentioned sideways movement better illustrates weekly chart. In addition, the last closed candle is a bearish pinbar, which indicates a reversal. It is also worth noting the two candles preceding this bearish pin bar form a inside bar formation which together with the pin bar gives us a bearish Fakey formation.


Also on daily chart you can see signs of possible declines. Trend line drawn from May lows has been broken. Currently price is above local support area at 0.8765. Closing daily bar under this level could trigger stronger sales.


On M15 chart a consolidation between the aforementioned support area of 0.8765 and local resistance of 0.8787 is seen. As there are obviously more factors in favor of a downward scenario, it seems more sensible to look for opportunities to sell after a successful breakout of 0.8765.


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