EUR/GBP Technical Analysis: bearish breakdown to be started
6 November 2015, 06:11
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Goldman Sachs made technical and fundamental forecasts related to EUR/GBP price movement for 2016 which was stated about the bearish trend to be continuing for this pair in the long-term situation:
| Instrument | Q1 Jan'16 | Q2 Apr'16 | Q4 Oct'16 |
|---|---|---|---|
| EUR/GBP | 0.690 | 0.670 | 0.650 |
As
we see from the chart above - 0.6935 is the key support level for this pair for both
timeframes:
- on W1 timeframe - the price is located below Ichimoku cloud for the bearish breakdown to be started;
- monthly chart - the price is on bearish for the ranging within 0.7492 key resistance level and 0.6935 key support level.
Chinkou Span line is located below the price for the bearish trend to be continuing with the breakdown by direction, and Ichimoku cloud together Senkou Span lines are far above the price which makes the bullish reversal to be impossible in this and next year for example.
Thus, the most likely scenario for this pair in the long-term situation is to break 0.6935 support level from above to below with good breakdown way.
