EURGBP Analysis – Good sell signal

Brexit, Brexit, Brexit. When this one will finally end? Not soon probably, that is why, movements on the EURGBP are still driven mostly by the rumours from the negotiations between the UK and EU. Most recently, we got some nice comments from Mr Barnier, which are giving the GBP a boost and are actually triggering us a sell signal on the EURGBP.

Situation here is pretty simple. The price created a head and shoulders pattern (grey rectangles) and already broke the neckline (black). What is more, EURGBP broke the long-term up trendline (pink), which is directly responsible for the negative sentiment. One obstacle for now is the yellow horizontal support on the 0.888. The bounce here can initiate a bullish correction but is should not crash the long-term negative sentiment.

As long as the price stays below the up trendline (pink), the sentiment is negative and we should see the continuation of the downswing.