EURGBP Weekly Strategy

Weekly Technical Chart

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EUR/GBP Weekly Candlestick Chart. The 10 and 30 week moving averages have now crossed positive with the 10 week moving average pointing upwards. Last week’s target at 0.9145 region did get hit with eventual support coming in at around the 0.9080 level.

The result of last week’s price action is now a type of double bottom on the short term charts which if plays out puts a target up towards the 0.9270 region today/tomorrow. Levels to watch for this are 0.9255/60/75 as targets, with the 0.9260 level approximately = to the 0.618% fib retracement level on the weekly chart. Last week’s candlestick known as a “Kabuse” is not quite as powerful as an engulfing candlestick but does maintain the bias for the next move of any significance as being to the downside for now.

Strategy for this week is try shorting at 0.9250/60 if seen with stops towards the figure. There is some resistance at 0.9240 also worth watching but would like to see the DB play out fully before shorting. This strategy is canceled if price action gets above the 0.93(00) figure on a sustained basis.

Published On Tue, Oct 6 2009, 09:07 GMT

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Chart-Workshop

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