Poor Cyclopip! Looks like EUR/GBP did break from the bearish pennant, but to the top! With Stochastic now in overbought territory, will sellers see this as an opportunity to establish their positions? Keep a close eye on those Fibonacci retracement levels, especially the 61.8% level, which lines up closely with the psychological .8600 level. You know how them big boys love those round figures!
Here’s some more Fib action for ya! The 38.2% Fib on GBP/USD’s 1-hour chart has been supporting the pair for the past few candles, and it also looks like the rising trend line is still intact. But be careful of the possible bearish divergence on the chart, because those hungry lil’ currency bears might sneak up on you and drag the pair to the 1.5750 handle!
Wedges are rising on the daily chart, and no, it has nothing to do with the pranks I pulled on Forex Gump a few weeks ago. The href=”http://www.babypips.com/school/wedges.html”>rising wedge that has been forming on the chart since September 2010 is still living up to its pattern, and has recently encountered support at the psychological 82.00 handle. Let’s see if the bulls can push the pair all the way to 85.00, or if the bears can hustle enough muscle to drag it to the 80.00 level. Stochastic is currently in the middle ground, so stay sharp!