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Technical analysis of EUR/GBP for August 31, 2015

Technical outlook and chart setups:

The EUR/GBP monthly chart, which is depicted here, shows a larger view of the entire wave structure indicating that a meaningful low might take place at 0.6900/20 this month. A bullish morning star candlestick pattern is also being produced indicating a potential reversal from here. Furthermore, the pair is bouncing off the fibonacci 0.618 support as well. It is hence recommended to initiate long positions with risk below 0.6900. Immediate support is seen at 0.6900 (interim), while resistance is seen at 0.7474 and higher respectively.

Trading recommendations:

Initiate fresh long positions, stop at 0.6800, a target is open.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com