Short term
Trade view / 29 August 2016 at 7:45 GMT

Bearish Evening Star to drive EURGBP lower

Partner at 3 C ANALYSIS / 3cAnalysis
United Kingdom
Instrument: EURGBP
Price target:
Market price:

Following the previous week's indecisive price action after making a new three-year high, profit taking was attracted to EURGBP last week. The result was the first decline in six weeks, a break through the 13-day moving average and, most importantly, the formation of a Bearish Evening Star pattern on weekly charts.

Although the downside stalled at a 62% correction point to August’s rise, the negative formation is expected to dictate sentiment in the coming days. It's worth noting similar, mirrored, patterns in GBPCHF & GBPJPY.

Management and risk description

A move to 0.8469 would mean the stop could be lowered to break even or better.


Entry: sell in 0.8550/55 area and any rally to 0.8594.

Stop: 0.8668 bid.

Target: 0.8469 and 0.8427.

Time horizon: this week, ending Friday 1pm London time.

Bearish Evening Star
Bearish Evening Star
62% Corrected

62% Corrected

Long term
Long Term
 Source (all charts): CQG

— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail