James Chen
09-10-2008, 11:46 AM
9/10/2008 – EUR/GBP – After EUR/GBP (a daily chart of which is shown) managed to reach a very long-term high last week at around 0.8185, price has corrected all the way back down to the top border of the rough triangle formation that it broke out of two weeks ago. This might be considered a possible breakout-pullback-continuation move if price subsequently makes a strong bounce back up from the top of this triangle. If this occurs, initial resistance clearly resides around the abovementioned long-term high, before any potential move towards new highs could take place. A breakdown back into the triangle, on the other hand, should meet further support around the uptrend line (in green) that has provided support for the pair’s impressive uptrend since at least one year ago.
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.)