EUR/GBP 4H Chart: Double Top

Source: Dukascopy Bank SA
© Dukascopy Bank SA
EUR/GBP prepares to launch an attack on a strong support level at 0.7220. This is the neck-line of the recently formed double top pattern, and it is reinforced by the monthly pivot. If the currency pair succeeds, the price may afterwards fall towards the Mar low near 0.70, though there is also the monthly S1 nearby at 0.7043 that can potentially stop a decline.
Alternatively, if demand at 0.7220 is sufficient to satisfy supply and trigger a rally, major resistances are at 0.7266 (weekly S1 and 200-period SMA) and at 0.7384 (Mar high). At the same time, the SWFX market participants prefer to be short the Euro. Currently only 38% of open positions are long.
© Dukascopy Bank SA
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