Cross-rate signals: EUR/GBP is in the zone of uncertainty

After the dubious growth last week, which was caused by data on the dragging out of the Brexit talks, the pair EUR/GBP tested the upper border of the rising channel, in which it is traded since the end of February. As a result of a break from the trend line, this pair was in the zone of uncertainty from 0.8900 to 0.8930.

Movement within this corridor indicates a restrained correction and the possibility of further growth of the cross-rate, which is also confirmed by the Ichimoku indicator. But, in the conditions of safety of the general upward trend, further growth of the pair is limited and can cause the formation of the figure “double top“, which will serve as a signal for sales and full-scale correction.

Levels of significant resistance,from which the formation of a reversal is possible, are: 0.8940 and 0.8960, consolidation above them will cancel the scenario for a decline. Support, which will limit the correction, is located at the level of 0.8900-0.8870. The breakthrough of this level will open the way to 0.8850-30 and 0.8810-00.

Fig.  EUR/GBP. The current price is 0.8920.

Hanzenko Anton