EURGBP Brexit technical analysis suggests GBP devaluation
Updated
Right off the bat, I think it's anyone's guess what is actually going to happen in such a rare event as a Brexit. So my analysis is only based on technical chart analysis and as a bit of fun to see if I can "guess" it's direction.
Having said that. The pitchfork as drawn on the weekly shows a bull bias. The Fibonacci is drawn on the ends of major price levels. The chart candles since the low point of July 2016 have shown a bull direction ever since. Furthermore, I can identify two major consolidation area's marked in green with strong buying in between. The strong weekly candle of the first week of June would suggest bulls are in control as it's a clear engulfing candle. This is a similar pattern shown in the previous consolidation zone of the last quarter of 2015 where strong consecutive buying weeks occurred to fuel the move up to the next consolidation zone.
If this bullish bias and the buying pattern would continue, this would suggest during Brexit the Euro will appreciate further against the GBP.
Comments or idea's, let me know in the comments what you think is going to happen the coming weeks.
Having said that. The pitchfork as drawn on the weekly shows a bull bias. The Fibonacci is drawn on the ends of major price levels. The chart candles since the low point of July 2016 have shown a bull direction ever since. Furthermore, I can identify two major consolidation area's marked in green with strong buying in between. The strong weekly candle of the first week of June would suggest bulls are in control as it's a clear engulfing candle. This is a similar pattern shown in the previous consolidation zone of the last quarter of 2015 where strong consecutive buying weeks occurred to fuel the move up to the next consolidation zone.
If this bullish bias and the buying pattern would continue, this would suggest during Brexit the Euro will appreciate further against the GBP.
Comments or idea's, let me know in the comments what you think is going to happen the coming weeks.
Note
1 year later, levels are aligning quite well actually!
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