Patterns: EUR/GBP, EUR/CHF
|EUR/GBP 1H Chart: Short-term decrease expected
The Euro has been depreciating against the British Pound since the beginning of 2019. This movement has been bounded in the falling wedge pattern.
As apparent on the chart, the currency pair has already reversed south from the upper wedge line at 0.8708. It is expected that the exchange rate targets the lower pattern boundary located circa 0.8450. If given pattern does not hold, it is likely that a breakout south occurs within the following sessions. Potential downside target is the monthly S2 at 0.8337.
Otherwise, the pair reverses north and continues to trade within given wedge.
EUR/CHF 1H Chart: Downside potential
The EUR/CHF currency pair has been testing strong resistance level formed by the Fibonacci 23.60% retracement at 1.1385.
As apparent on the chart, the exchange rate reversed south from given resistance last week. Given the fact that the pair had reversed south from the upper boundary of the long-term descending channel, it is likely that some downside potential prevails in the market. It is likely that the rate targets the Fibonacci 0.20% retracement at 1.1195.
It is unlikely that bulls prevail in the market, and the pair surpasses the resistance cluster formed by a combination of the 55-, 100– and 200-hour SMAs in the 1.1309/1.1345 range.
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