I’ve spotted a potential reversal setup, a break-and-retest opportunity, and a range play on the charts of EUR/JPY, GBP/JPY, and EUR/GBP this week. Check it!
It looks like this pair is settling inside a range after bouncing off support around 131.85 and finding resistance at 134.40. Price seems to be on track towards testing the resistance once more but has stalled at the middle of the range.
Stochastic is pulling up from oversold levels to signal that sellers will be taking a break to let buyers take over. But if bearish pressure remains in play, the pair could drop for another test of the range support from here.
- WO: 132.43
- Top WATR: 133.44
- Bottom WATR: 131.42
- PWH: 133.14
- PWL: 131.35
Pound bears came out in full force after last week’s BOE decision even as the central bank hiked interest rates. Guppy tumbled from its channel resistance and broke through support, signaling that a reversal may take place from here.
Applying the Fib tool on the dive shows that the 38.2% level lines up with the broken channel support and the 150.00 major psychological mark. If this keeps gains in check, sellers could take the pair back down to the swing low or lower.
Stochastic seems ready to turn lower to reflect bearish momentum, but if the correction ain’t over, the higher Fibs all the way up to the 150.70 area could still get tested.
- WO: 149.05
- Top WATR: 150.47
- Bottom WATR: 147.64
- PWH: 151.93
- PWL: 148.68
Reversal alert! EUR/GBP seems to be done with its selloff as the pair is forming a double bottom pattern on its 4-hour time frame.Price bounced off the .8750 minor psychological support a couple of times and is making its way towards the neckline around .9030. A break above this resistance could take the pair up by 280 pips or the same height as the chart formation.
However, stochastic is turning lower from the overbought zone to signal that sellers are ready to push price back down. In that case, another test of the bottoms could happen.
- WO: .8885
- Top WATR: .8958
- Bottom WATR .8812
- PWH: .8938
- PWL: .8733
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