currencies

EURUSD tests the bearish sentiment on the neckline. GBP drops like a rock

GBP was a real star of today’s trading. We had the first rise in UK rates in the recent history. The outcome of this was bearish for the Sterling. EURGBP was signaling this possibility yesterday. The price created the hammer candlestick on the daily chart which was bouncing from the important long-term support. The sentiment is definitely positive.

Next one is the EURUSD were we have a small correction of the movements seen in the last week. The correction is shaped as a flag and is aiming the long-term resistance, which at the same time is a neckline of the H&S formation. Sellers have higher odds for the success.

Gold is in a bearish flag but at the same time is very close to breaking the mid-term down trendline especially that we are still above a strong support created by the two Fibonacci lines and two dynamic trend lines.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis