EUR/GBP 1H Chart: Channel Down

Dukascopy Bank Team Dukascopy Bank SA

EUR/GBP 1H Chart: Channel Down

Comment: After setting an all-time high of 0.9118 in September 2016, EUR/GBP slipped and then entered a ranging motion. The pair has just finalized the attack on the upper range area and has entered a channel down pattern to lead it south again. While the channel has remained solid during the last week and a half, diminishing highs are showing some built up bullish momentum. We do, however, believe that the surge will be cut by the upper boundary of the senior pattern, at least for now. The next target lies at 0.8663, the upper trend-line of the wedge, and will open up a cloud which could lead to some corrective movements before any attacks at the channel upper boundary are launched.

USD/SEK 1H Chart: Channel Down

Comment: USD/SEK showed a downward sloping motion on the hourly chart in a bearish channel pattern which has now been confirmed two times on both sides, but might show some change of heart rather soon. The southward trend might be cut at 8.7403 which is the January 2016 low and we could look for a bounce to the upside. Until then we do, however, believe that the channel will hold, setting the next target at 8.8174, the upper boundary. The rate is currently squeezed in between several levels and has established a somewhat ranging motion which might spill into the upward momentum and flatten out the path.

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Dukascopy Bank Team

Dukascopy Bank SA

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