I last wrote about EURGBP a few weeks back (which you can read here) where I talked about the emergence of a descending wedge on the weekly and daily chart of EURGBP. I admitted that I have a particular interest in a declining EURGBP rate as it helps me enormously from a personal level.
It would appear that the descending wedge continues to hold and price closed on it lows this week at 0.8173 – just a sliver away from the 2014 low of 0.8166. If price can close below that low on a weekly basis then I’m looking at 0.8100 as a target where the low of the wedge intersects with a zone of support. Naturally I dont expect price to move there in a straight line. You can see on the daily chart there have been opportunities to sell when price has reached the top end of the wedge. We shall wait and see if we’re offered another opportunity to do the same.
It was nice to see not only the top end of the wedge hold but also the last two days the previous level of support at 0.8225 also held as resistance. I shall be keeping a special eye on where this currency goes next.