EUR/GBP: possible topping pattern

The EUR/GBP pair has continued rising higher and re-touched the June highs. Whilst it has broken out of a channel it is still encompassed by the broader down-trend. The wave formation higher appears complete with the final move up – a 5th wave – now finished after matching the highs. The current activity with its overlapping waves is characteristic of topping formations and indicates a possible move lower on the horizon, with a probable initial fall to the 50% Fib and trend-line at 0.7855, with confirmation coming from a move below 0.7900.

Written by Forex4you