EURGBP forms negative pattern – Technical Analysis – 07-10-2015

The EURGBP pair rose yesterday, moving within tight range after hitting 0.7445 key resistance, with more positive pressure offered by the moving average 50, hinting to form negative pattern that opposites the current dominating bullish trend, this pattern is the Diamond, which will be completed by breaking its support line, accompanied by breaking the moving average that will put additional negative pressure.

Despite the dominant short term bullish trend, we expect the price to decline in the upcoming period, especially when breaking the mentioned pattern’s support, to target 0.7285 support level.