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EUR/GBP signals for depreciation as it formed a Double Top pattern on 1H chart. The pattern has 84% quality and 85% magnitude in the 218-bar period.
The pattern started when the pair bounced from 0.7833 on 20th of August. Pattern's resistance is at 0.7995/97; pattern's support is at 0.7902. The SWFX market sentiment is bullish as 61% of traders hold long positions on the pair. Long traders, who expect that the pair might try to evolve in to rectangle or triple top pattern, could set their targets at Fibonacci retracement (23.6% of move since 20th of August) at 0.7926, daily pivots at 0.7934 (PP) and 0.7952 (R1) and pattern's resistance around 0.795/97.
Technical indicators on aggregate point at depreciation of the pair on 1H time horizon suggesting that the will try to breach pattern's resistance. In addition, although market sentiment is bullish, but currently 75% of all pending orders are sell orders. Short traders should set their targets at daily pivot (S1) at 0.7912, Fibonacci retracement (38.2%) at 0.7908, pattern's support at 0.7902 and daily pivot (S2)/Fibonacci retracement (50%) at 0.7894.
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