EUR/GBP was in a strong and consistent downtrend during the recent days that sellers were successful in obtaining the lowest price of 0.78879. price with reaching to the supportive level which is shown in the picture below ( made of 2 bottom prices) and the important support level of 161.8 has stopped from more descend ( sellers used this level to exit their trades) and with formation of a bottom price in H4 time frame has prepared a field for ascending of price. Currently in 4H time frame with formation of Morning Star Pattern with 4 stars (the failure of sellers in reaching to the lower prices) price has been stopped from more descending and there is a possibility of formation of a bottom price and finally ascending of the price.
According to the formed movements in the price chart, between the top price of 0.80327 and the bottom price of 0.78879 there is an ideal AB=CD harmonic pattern with the ratios of 61.8 and 127.2 that warns about changing price direction and price reformation. Stoch indicator is in saturation sell area and confirms the D point of this pattern by the next cycle and warns about the potential of ascending of the price during the next days. Generally until the price level of 0.78879 is preserved, the price has the potential for ascending and reformation.
Technical Analysis of EUR/GBP dated 2014.07.17
According to the formed movements in the price chart, between the top price of 0.80327 and the bottom price of 0.78879 there is an ideal AB=CD harmonic pattern with the ratios of 61.8 and 127.2 that warns about changing price direction and price reformation. Stoch indicator is in saturation sell area and confirms the D point of this pattern by the next cycle and warns about the potential of ascending of the price during the next days. Generally until the price level of 0.78879 is preserved, the price has the potential for ascending and reformation.
Technical Analysis of EUR/GBP dated 2014.07.17
![](http://www.pipsafe.com/pipsafe-picture/news/1081279_flml_53431.png)