If one is lonely and two is company, then three is definitely a party! Check out the triple candlestick pattern on the daily chart! An evening star popped up just after a bullish candle, and was followed by a bearish candle. Does this mean that it’s reversal time? Stochastic on the overbought region thinks so! If the bears pretended that airplanes in the night sky are like this evening star, they could push this pair all the way to a potential support at the 61.8% Fib near the .7625 handle. Watch this one closely!
Guppy bulls, beware! With the Stochastic doing a bearish crossover in the overbought region and the long-term falling trend line resistance holding, it looks like some selling is in the cards. If this bearish run continues, look for GBP/JPY to possibly test 127.60, a major support level. While it may take some time for the pair to get there, this seems to be the level that the bears are aiming for!
You want more Fib action on the daily chart? Here’s one for ya! EUR/GBP seems to have headed south for the past few days, and it looks like the pair is in for more red candles! Be careful though, as it may encounter support at the 50% Fibonacci retracement level near the .8540 handle, or even the 38.2% Fib near the .8630 level. Stochastic also looks like it’s bored in the oversold region, so watch out for a reversal!