Technical analysis of the currency pair EUR / GBP on 10/01/2017. The daily chart
General analysis
On Monday 09/01/17 currency pair EUR / GBP continued its grow by forming big rising candle with by 100 points. Also, according to the results of yesterday's session the resistance level 0.8700 has been broken. Price was able to pass this mark and consolidate above the resistance level.
We are not expected major news from the Eurozone today so that the news background will be unusually quiet.
The graph of Stochastic indicator shows the clear upward trend.
Next few days
Break of the resistance level 0.8700 and fixing prices above indicates potential buy for
EUR / GBP.
However, given the propensity of this currency pair to form false breakouts and the mixed signals from the indicator we can conclude that the opening of sale should be made only after receiving confirmation of the breakdown and fixing of the price above the resistance level at least with two candles.
The immediate goal to capture profits on above 0.8700 will be the level 0.8900.
