EURGBP might see an end to its recent online currency trading selloff, as a classic forex reversal pattern formed on its daily time frame. The price made a double bottom formation, indicating that an uptrend might happen sooner or later.
For now, price is still testing the online currency trading pattern’s neckline, which is located near the .8000 major psychological resistance level. A break above this resistance could confirm that the previous trend is about to turn and that EURGBP could be in for more gains.
Take note that the chart pattern is roughly 150 pips in height, which suggests that the potential breakout could be of the same size. This could take EURGBP up to the .8150 to .8200 psychological resistance zones in the event of an upside break, with stronger online currency trading rallies likely to last until the .8300 to .8350 levels.
Online Currency Trading Forecast
Take note that both currencies are under heavy selling pressure, with the Scottish independence vote weighing on the UK economy and sterling in online currency trading. As for the euro, the recent ECB easing moves could push the pair back down. Recall that ECB Governor Draghi announced another set of interest rate cuts and plans for purchases of asset-backed securities.
With that, there’s also a good chance that EURGBP could stay in an online currency trading range, with support around .7900 and resistance at .8050. Traders are likely to wait for more clues or the actual result of Scotland’s referendum before taking any huge positions on the pound.
Apart from that, BOE Governor Carney has a speech scheduled today and this might have more clues on where monetary policy is headed. Recall that the BOE decided to keep rates and asset purchases unchanged in their latest rate statement, although the previous one indicated a couple of votes to hike rates.
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