EURGBP under the pressure of the negative formation – Technical Analysis – 25-05-2016

The EURGBP confirmed completing the head and shoulders’ pattern after showing a successful retest to the broken neckline, which turns into resistance now at 0.7750, to extend the bearish correction on the short term basis, targeting 0.7550 followed by 0.7415 areas in the coming period.

The exponential moving averages 50 and 100 push negatively on the price to support the expected decline, and the price might witness some temporary rise affected by the positive momentum that appears on stochastic before declining again.

Breaching 0.7850 will stop the negative effect of the mentioned pattern and push the price to return to the bullish trend.