It looks as if a descending triangle has formed at the top of a significant bullish push, this is very likely to be a major signal for a reversal. Usually the price would break out the support level of a descending wedge and is likely to show significant bearish moves. If the price breaks out the bottom we could see the price of this pair move down to as low as 1.689.
This also confirms the fundamentals of this pair, it is very likely that we would see the EUR moving down against most other currencies due to the problems that are occurring due to Brexit. It is very likely at this stage that the UK are going to end up leaving the EU without a trade deal, this is negative for both the economies as they will both have a lot at stake. The EU is currently trying to become more lenient and negotiate with the UK a trade deal for when the UK leave the EU on March 29th 2019. If/Once a deal is agreed we would see significant gains in these pairs, but until then we would see both EUR and GBP struggle to gain grounds against most of the major and minor currencies. I will update this post once the price has broken out the support or resistance level of the descending triangle.
This also confirms the fundamentals of this pair, it is very likely that we would see the EUR moving down against most other currencies due to the problems that are occurring due to Brexit. It is very likely at this stage that the UK are going to end up leaving the EU without a trade deal, this is negative for both the economies as they will both have a lot at stake. The EU is currently trying to become more lenient and negotiate with the UK a trade deal for when the UK leave the EU on March 29th 2019. If/Once a deal is agreed we would see significant gains in these pairs, but until then we would see both EUR and GBP struggle to gain grounds against most of the major and minor currencies. I will update this post once the price has broken out the support or resistance level of the descending triangle.