I’m seeing breakouts on the crosses these days, but I think I’m gonna stay patient in waiting for pullbacks before trying to catch the big moves on EUR/GBP, EUR/JPY, and GBP/JPY.
Euro bears finally regained control and pushed this pair below the rising trend line. A bit of a pullback is happening, though, and applying the Fib tool on the latest swing high and low shows that the 61.8% level lines up with the broken support.
Stochastic is also pulling up to indicate that sellers are taking a break and letting buyers take control from here. Once the oscillator hits the overbought zone and turns lower, selling pressure could return and take price back to the swing low or lower.
- WO: 129.05
- Top WATR: 130.12
- Bottom WATR: 127.99
- PWH: 130.88
- PWL: 128.04
Guppy looks ready to make a strong break below the ascending triangle bottom to indicate that further losses are in the cards. This chart pattern is approximately 2000 pips tall so the resulting breakout could be of the same size.
However, stochastic is already dipping into the oversold area to signal exhaustion among pound bears. A retest of the broken triangle support around 143.00 could be possible before price heads any lower from here.
There are several top-tier reports due from the U.K. this week, including CPI and jobs figures, so there probably won’t be any shortage in volatility for pound pairs.
- WO: 141.93
- Top WATR: 143.36
- Bottom WATR: 140.51
- PWH: 144.72
- PWL: 141.26
EUR/GBP was able to sustain its climb after breaking past the long-term descending triangle resistance visible on its daily chart. However, this rally could hit a roadblock as price moves close to the previous year highs.
Stochastic is already hovering around the overbought zone to signal exhaustion among buyers, so profit-taking could happen sooner or later. Then again, the triangle is around a thousand pips tall, so the uptrend could have further room to go.
- WO: .9095
- Top WATR: .9169
- Bottom WATR: .9029
- PWH: .9119
- PWL: .9008
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