The EURGBP cross has developed a first corrective move after to reach the highest level since September 2017. Follow with us what to expect from EURGBP from the following weeks.
The flag pattern
The flag pattern is a typical corrective structure. Depending on its internal sequence, we can call it a zig-zag or flat. Independently of this internal sequence, the recognition of this formation could let us an edge facing the market. According to Bukowski, this pattern tends to fail less than four per-cent (4%).
The flag formation from the EURGBP 1-hour chart, suggests that a new bearish leg should start soon. We expect more declines at least to the 0.9024 level. The invalidation level is above 0.9182.
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Remember that the price is not forced to move as our outlook proposes. The chart released corresponds to an educational application of the Elliott Wave theory. Comments issued don’t represent an investment recommendation. Leveraged products are complex financial instruments and are not recommended for a certain type of traders. Losses can exceed deposits.