Joined Nov 2011
Status: Junior Member
The pair of Euro-Sterling has a downward trend in the very long term (since 2008), neutral and down the long term and short to medium term.
Between May and July this year suffered the threat of a Head & Shoulders, but this proved not to be activated.
You are currently testing important support of 0.852 X. If this break, the next support area is between +-0.835/0.828. There is a possible descending triangle to help the bears in the split. Its projection is 400 pips, which throws the target to 0.81 X, the minimum value very close to 2010. There is one factor may take some force to this figure: the training time. It takes +-5 months, which already exceeds slightly its validity.
However there is a second scenario, the balance of power between bulls and bears, a long and wide between the lateralization 0.879 and 0.852 (blue lines on the daily chart).
Looking more closely, a 4-hour chart, the RSI is to enter a oversold. There is even an interesting positive divergence between price and RSI (marked with red rectangle).
Today is the euro suffered a major devaluation, and may have even turned in a cross EurUsd Bear Flag. But the British pound is also devalue the very GbpUsd.