EURGBP Weekly Technical Chart

Weekly Technical Chart

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EUR/GBP Weekly Candlestick Chart. Price action currently residing around the 61.8% retracement level taken from the October 2008 to December 2008 up move. The weekly close last Friday was the lowest for the year so far and it was also a close below the 61.8% retracement level which overall makes this market look negative.

With price action above the 0.8500 level the potential for a return move to the upside remains technically viable as long as the 0.8470 and 0.8445 levels remain intact. These levels were broken on Friday and Monday (yesterday hitting my stops) but the price action quickly recovered resulting in a daily close back above these levels. As a result of yesterday’s bounce there is now a hammer candlestick on the daily chart pushing the market higher.

The bias for the next move of decent size remains to the upside with dips towards 0.85(00) as opportunities to add to long positions. Returning to the 0.8475 levels would be disconcerting but only below 0.8445 does the towel get thrown in again!

Published On Tue, Jun 23 2009, 14:22 GMT

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Chart-Workshop

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This material (“Material” means any technical analyses research), has been prepared for information purposes only and does not constitute a solicitation nor an act of advice or instruction to buy or sell securities. This material contains results and information intended for the sole recipient of this document only. Each recipient of the information contained in this document should make his/her own independent evaluation of the relevance and adequacy of the information contained herein and make such other investigation as necessary, including obtaining other independent advice before participating in any transaction in respect of the securities referred to in this material. The recipient/s of this material therefore agrees to place no responsibility on the author for financial losses incurred after reading this material nor advice or recommendations of any sort. Technical analyses includes identifying short, medium and long-term price trends. Technical analyses can show areas of potential consolidation and show where supply and demand are currently going to effect the price action. As a result of this analysis, investment performance can be enhanced and can clearly define desirable areas to buy or sell items that have been identified as attractive or dangerous in terms of value. It is important to note that all forms of analysis rely heavily on historical data, but that past performance is not necessarily indicative of future results, and can not foresee the out break of war, an act of god, or any other cause that may effect the price (after the results of the technical analyses have been completed), and which may cause hysteria within the (corresponding) market/s resulting in sudden losses in terms of value. In the case of such events that cause market turmoil, the market/s quickly discount all information, which then ceases to be relevant to the price action. While the information herein is believed to be reliable, it has not been independently verified by any Financial Authority. There is, likewise, no acceptance of responsibility or liability of any kind with regard to the accuracy or completeness of the information contained herein. The author of this material confirms that the information expressed herein accurately reflects his personal views. The information contained in this material is also subject to change without notice.