EURGBP Bearish Analysis (17/05/2016)

This is EURGBP on the daily. I feel that either result from Brexit will in fact cause GBP strength. The chart is pretty self explanatory – movements from low to high volume and back, following the ebb and flow of the market. The chart looks very similar to the following USDJPY chart, in terms of a strong bullish run up with many inefficiencies to fill. We’ve also made a pretty strong head and shoulders pattern, which can have a lot of significance on the daily.

In addition, we have the opposite occurring on GBPUSD:

Considering everyone is looking to the downside on sterling, it’s only right that I look to the upside…

One caveat:

Ouch.

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