Sasha Singh
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EURGBP : A Rising Wedge Pattern Giving Bearish Signal, Moving Average Might Change the Trend

EURGBP : Daily Chart

EURGBP on the daily chart is trying to revive from the support at .7785 and currently testing the key resistance at .7887 which earlier provided support to the pair. However the pattern on moving averages on the chart is signaling a downtrend continuation and the pair should again pull back from the current resistance. If it is able to hold above this resistance the next nearest resistance it may find at 50 day SMA or 100 day SMA or at .8036.

EURGBP : 4 Hour Chart

On the 4 hour chart, the pair seems to be following a rising wedge pattern which gives a bearish signal and the pair might decline anytime below the rising support trend line of the wedge. Currently it is trading near the resistance trend line and also near a key resistance at .7888 which earlier also resisted the pair in rising further.

However the moving averages seems to be changing the trend as 50 day SMA is now contracting towards the 100 day SMA and might cross above it. If it does so, the pair might continue to rise and the bearish might fade away.