James Chen
07-08-2008, 04:02 PM
7/08/2008 – EUR/GBP – Price action on the EUR/GBP daily chart, as shown, has been consolidating in a well-defined symmetrical triangle formation for at least three months now. This consolidation has been marked by progressively diminishing volatility, and follows closely on the heels of an impressive uptrend run that began in September of last year. Some may consider the current triangle a flag formation, although flags and pennants usually show up as smaller chart patterns than what we are seeing now. In any case, this consolidation may be hinting at a possible continuation of the uptrend, as both flags and triangles are often considered continuation patterns. Therefore, any clean break above the top triangle boundary could represent a potential breakout trading opportunity, targeting the closest major resistance around the long-term high in the 0.8100 region.
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; chart pattern in yellow; 50-period simple moving average in light blue.)
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; chart pattern in yellow; 50-period simple moving average in light blue.)