Cross-rates signals: cross EUR/GBP works off the figure of “double bottom”.

In the course of Tuesday trading, against the background of positive statistics on Germany and weak data on inflation in the UK, the cross rate managed to overcome a significant resistance zone 0.8910-40. This indicates the readiness of the market to work out the “double bottom” figure. In addition, this reversal pattern indicates a resumption of the general upward trend, which has been maintained for the last two years.

Also, this signal persists, despite the correction of the pound in the main pair with the US dollar.

As a result of fundamental factors, the EUR/GBP pair managed to break through the main resistance zone of 0.8910-40, resulting in overbought. Therefore, it is possible to roll back to support levels, after which it is necessary to expect the growth of this cross. The minimum goal is located at 0.9020 (the maximum of October), the second – 0.9070-90. Support levels are: 0.8900 and 0.8870.

Hanzenko Anton