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 - 0.7400

By: Dmitriy Chernovolov

  • EUR/GBP reversed from long-term resistance level 0.7470
  • Next sell target - 0.7400

EUR/GBP today reversed down from the major, long-term resistance level 0.7470 (which earlier reversed the previous sharp waves 4 and ① in May and October of 2015, as you can see from the daily EUR/GBP chart below). The resistance zone near the resistance level0.7470 was strengthened by the upper daily Bollinger Band.

Given the strength of the resistance level 0.7470 and the clear bearish divergence that can be seen on the daily Stochastic indicator - EUR/GBP can be expected to fall further to the next sell target at the support level 0.7400 (previous buy target recently reached by this currency pair).

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