|Chart Formation||Head/Shoulder||Head/Shoulder||Falling Wedges||Falling Wedges|
|Market Comments||Short Term = DOWN SIDEWAYS |
Intermediate Term = Sideways
Long-Term = Down
Let's see what are the sentiment indicators data based on traders open position on the EUR-GBP. In the short-term SSI indicator shows a mix of data between the providers where OANDA 65.3% open position are buying and Forex Factory 53% and Saxo Bank 60.04% are selling.
In the long-term perspective we can see obviously 3 falling wedges which means the downfall cycles is completed. There is no historical correction level left that we can see on the monthly chart. Furthermore the MACD and Stochastic is also synchronized downwards which means the only way is going down. The Euro currency has been dominating against the Pound Sterling for 8 years since 2006, and this time on-wards could be the GBP era to take charge with the target direction at 0.6798.
That's the conclusion we can make based on the historical data of the EUR-GBP movement in the long-term. But not to forget a new economic landscape could change the whole situation as there is a sense of indication that MACD and Stochastic are wearing out. This could trigger a temporary/permanent upward movement.
Historically the Eurzone and Britain interest rates are moving in synced for many years since the introduction of Euro currency. And for that reasons chart movement of EUR and GBP against other currencies i.e. USD, GPY, etc are identical. The slight differences of the movement can be seen on the EUR-GBP graph.