Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

EUR/GBP: sell target – 0.7200

By: Dima Chernovolov

  • EUR/GBP reversed from resistance area
  • Next sell target – 0.7200

EUR/GBP recently reversed down sharply from the combined resistance area lying between the resistance levels 0.7430 and 0.7370 (this resistance level earlier reversed the previous waves (A) and B in March and April, as you can see below). This resistance zone was further strengthened by the upper resistance trendline of the daily up channel from March, 38.2% Fibonacci Correction of the previous sharp downward impulse wave from December and by the upper daily Bollinger Band.

EUR/GBP reversed down from the aforementioned resistance zone with the daily Japanese candlesticks reversal pattern Bearish Engulfing (completing the previous primary correction ②). EUR/GBP is likely to fall to the next sell target 0.7200.

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