© Dukascopy Bank SA
EUR/GBP has slowed down its recovery and has formed a Triangle pattern on the 1H chart. The pattern has 93% quality and 100% magnitude in the 147-bar period.
The pattern started when pair rebounded from 0.8140 and after testing support levels at 0.8050 and 0.8064 it has slowed down at 0.8082 where the pair is currently trading. Estimated support and resistance levels intercept at 0.8114 on the 11th of June. Aggregate indicators do not suggest clear emerging trends at any of the time horizons, but the Stochastic indicator on the 1H time horizon points at a bullish market outbreak. Long traders could focus on the daily resistance level at 0.8097. If this level is breached, next target could be at 0.8109.
The current market sentiment is 40/60 in favor for the bears. Short traders could focus on the support level at 0.8071. If the pair breaches this level, next possible target could be at 0.8064.
© Dukascopy Bank SA