I've posted this analysis that you're about to read in the Technical Analysis Contest, you can find the original post here: EUR/GBP Breakout Mode The moment I've made this forecast EUR/GBP was trading at around 0.7470 now we're trading at 0.7211.

EUR/GBP has started shifted to the downside once we broke the major support level of 0.7700(see Figure 1). This is a major support level since it was support level in 2008 and than in 2010, but once we managed to break and close below it the momentum started accelerating and this is a strong sign that for now we're going to move in the direction of line of least resistance. Next major level comes at 0.7100 which was a strong resistance level from 2003 to 2008 when we finally broke to the upside.


Figure 1. EUR/GBP Monthly Chart.


We can see that based on the seasonality GBP (see Figure 2)should start getting stronger from beginning of next month and which should help EUR/GBP pushing further to the downside. However in the short term we should expect EUR/GBP taking a pause and consolidated before next leg down.
Figure 2. GBP Seasonality Chart



Based on my forecast and my projections we should see an exchange rate for EUR/GBP of 0.7230 for 1st of April 2015"

Best Regards,
Daytrader21
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