EUR/GBP Forms Hourly Head and Shoulders Reversal Pattern
EUR/GBP has started to the New Year with negative momentum as prices form a bearish reversal pattern on lower timeframes…
Recent price action on EUR/GBP’s hourly candle chart indicates that this key currency cross may be starting to rollover. A clear head and shoulders reversal pattern has formed with prices breaking below the ‘neckline’ of the pattern during today’s early European trading. The RSI (relative strength index) on this timeframe serves to reinforce the reversal pattern – indicating that short-term momentum is clearly bearish.
EUR/GBP Hourly Candle Chart
Past performance is not a reliable indicator of future results
Higher Timeframe Context: EUR/GBP Daily Candle Chart
Candle patterns on the hourly candle chart should always be viewed within the context of a higher timeframe. The daily candle chart for EUR/GBP reflects a decisive mid-November to early-December sell-off, breaking the previously established ascending trendline from the autumn.
The location of the hourly head and shoulders reversal pattern is within the 61.8% - 78.6% Fibonacci retracement zone of the mid-November to early-December sell-off.
EUR/GBP Daily Candle Chart
Past performance is not a reliable indicator of future results
EUR/GBP Key Events:
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Recent price action on EUR/GBP’s hourly candle chart indicates that this key currency cross may be starting to rollover. A clear head and shoulders reversal pattern has formed with prices breaking below the ‘neckline’ of the pattern during today’s early European trading. The RSI (relative strength index) on this timeframe serves to reinforce the reversal pattern – indicating that short-term momentum is clearly bearish.
EUR/GBP Hourly Candle Chart
Higher Timeframe Context: EUR/GBP Daily Candle Chart
Candle patterns on the hourly candle chart should always be viewed within the context of a higher timeframe. The daily candle chart for EUR/GBP reflects a decisive mid-November to early-December sell-off, breaking the previously established ascending trendline from the autumn.
The location of the hourly head and shoulders reversal pattern is within the 61.8% - 78.6% Fibonacci retracement zone of the mid-November to early-December sell-off.
EUR/GBP Daily Candle Chart
EUR/GBP Key Events:
- Thursday 4th Jan 07:45 (UK Time) French CPI Data
- Thursday 4th Jan 13:00 (UK Time) German CPI Data
- Friday 5th Jan 10:00 (UK Time) European CPI Data
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.