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EUR/GBP Technical Analysis & Daily Chart


Published on: 26/01/2017



General Analysis
The EUR/GBP currency pair continued to decline and during this week has already dropped for almost 200 points. At the moment the price of the euro is declining versus all major quotes and this will most likely continue at least until the end of this month and possibly even further.

As we predicted earlier, the intersection of the price and simple moving average (14) on a daily chart was an excellent signal to sell. Even given the fact that now there is a fairly steep downtrend forming with a high probability of correction, selling the EUR/GBP is still promising.

The Stochastic indicator is scheduled to be in the oversold zone, indicating a clear advantage for sellers.
 

The Next Few Days
We expect a continuation of the decline for the EUR/GBP at least until the end of January. The target point of profit-taking on sales will be the support level of 0.8300.
There is a possibility for the formation of a correction against the downward movement so given this fact, the most favorable option is to open a position after the correction is over.

By calculating the depth of the correction, we recommend orienting yourself based on the Fibonacci correction levels - 23.6%, 38.2%, 50%, 61.8%.

The optimal volume of the first transaction will be 2% of the deposit with a consequent increase of volume as it moves
downward.


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