EUR/GBP: negative outlook
• EUR/GBP falls inside minor impulse 3
• Next sell target - 0.7430
EUR/GBP has been falling strongly in the last few weeks and months – continuing the strong overriding downtrend which has been affecting this currency pair from the start of 2013 (as you can see from the weekly EUR/GBP chart below). The price earlier reversed down from the resistance zone lying at the intersection of the resistance level 0.7600 and the former support trendline of the weekly extended down channel (acting as resistance now after it was broken last month).
EUR/GBP is expected to fall further in the active minor impulse 3 toward the next support level 0.7430 (which reversed the price in January). If the pair closes at the current levels or below – it will form the Japanese candlestick pattern – Falling Star (strong bearish signal).