Technical analysis of EUR/GBP dated 01.10.2012
EUR/GBP by making the top price of 0.81149 and closing the descending candle in the next day recorded it. As it was mentioned in previous technical analysis of this currency pair dated 18.09.2012, from this resistant level there can be downfall of the price. Right now the price by reaching to the ascending trend line (the formation of the third point of ascending trend line) has been stopped from more ascend. The third point on this ascending trend line is recorded on the level of 0.79230.
As it is drawn in the picture below, in addition to the ascending trend line, there is other supportive line in this region. This line is made of three resistance points and after breaking of their level, it is converted to the supportive line, and show the possibility of formation of the bottom price in this region. The formation of candle patterns of Hammer and Inverted Hammer on ascending trend line and the alternate line shows the failure of the sellers for reaching to the lower price and the possibility of the formation of the bottom price for ascending of the price. Stoch indicator shows the possibility of ascend according to the next cycle during the next days. Generally according to the formed signs in the chart of EUR/GBP, until the bottom price of 0.79230 is preserved, there is the possibility of ascend in this currency pair.
FxGlory
2012.10.01