The EUR/GBP could end with losses for the third day, as the pair closed yesterday below 0.8636 yesterday, confirming a bearish doji reversal. The pair had created a long-tailed doji candle on Tuesday.
For now, we can see there’s a ‘Double Top’ pattern, which has been confirmed, so the price moved lower. The 89 Moving Average is acting as support, but we’ve got a bearish ‘Flag’.
Key Trading Level: 0.8652
In this case, we’re likely going to have a local upward correction towards 0.8648 – 0.8658 and the subsequent decline in the direction of the next support at 0.8616 – 0.8598.