Trading opportunities for the currency pair : After Brexit traders convert pound to the euro and other currencies. I believe that the euro / pound will rise to 0.9081 in the form of a sawtooth pattern on expectations of another rate cut to 0.1%. Against the background correction able to finish the rollback to the level of 0.8480. growth scenario will be canceled at the close of weekly candle below 0.8349.
The latest idea for the pair EUR / GBP was published June 20. At the time of its publication the euro traded at 0.7848. According to the weekly pinbaru expected rate drop to 0.7690. The goal was achieved before the referendum in the UK. July 23 euro tested the level of 0.7599.
Demand for the euro rose after the July 24 Brexit. 52% of Britons voted for the UK exit from the EU. After the referendum, the price came out of the descending channel "1", which dates back to December 2008. For nine weeks the euro strengthened against the British pound at 1126 points, up to 0.8725.
This review is in addition to the idea of EUR / USD. On the weekly chart, I would like to direct your attention to exemplary landmarks. As if the euro will go up against the pound, then the euro will strengthen against the dollar is stronger when it is weakening against other currencies. Brexit a negative impact on the British pound, so speculators it is converted to the euro and other currencies.
The February and July 2013 highs form for buyers first important resistance 0,8769-0,8815. Highs from the 0.9149 March 2010 and June 2011obrazuyut 0.9083 second resistor. When you reach them, and rebound, the euro the dollar will be under pressure.
Experts from the Bank of America Merrill reported that members of the Monetary Committee of the Bank of England said that the lower bound of interest rates should be close, but "slightly" above zero. In this regard, they expect the Bank of England in November cut rates from 0.25% to 0.1%.
In the current model, it is believed that the euro / pound will rise to 0.9081 in the form of a sawtooth pattern.Able to finish even rollback to the level of 0.8480. When you close the week below 0.8349 candles scenario growth canceled.