Сross-rates signals: EUR/GBP returns to the channel

After the EUR/GBP cross worked off the figure “double top”, this currency pair broke off the lower border of the rising channel, which can be traced from November 2015. The main reason for the pair’s return to the global channel was the data on the occurrence of some contradictions in the negotiation process on Brexit.

As a result, the cross-rate EUR/GBP could not update the minimum of November of the current year and formed a reversal candlestick formation on the daily timeframe. The entry area for purchases is the mark: 0.8850-80. After that, one should expect a resistance test at the levels: 0.8930-40 and 0.9000-20. It should also be taken into account that this cross depends to a large extent on the negotiations between the UK and the EU, which can cause an unjustified increase in volatility. Support is located at the levels: 0.8800-10 and 0.8750-60.

The graph of EUR/GBP H4. The current price is 0.8840.

Hanzenko Anton