Reversal incoming! It appears that a shooting star candlestick pattern has formed right on the falling trend line, hinting at a possible reversal. Are the bears going to… well, sell high (pun not intended)? If they are, look for price to drop down to former lows around the .7580-.7600 region.
And now, let’s check out EUR/CHF struttin’ what looks like a pair of double tops on the 4-hour chart. If you’ve gone through the BabyPips.com School of Pipsology, you probably know that aside from you being awesome, a double top pattern usually means that a reversal is about to happen. So be on your toes for a convincing break below the neckline at 1.2800 because the pair may just tumble all the way down to around 1.2450. Don’t get too excited rooting for the Swissy just yet though. Who knows, buyers might have just taken a chill pill and are getting ready to hustle EUR/CHF past 1.3000!
Spinning top, hanging man, and a couple of dojis… aha! It looks like reversal candles are partyin’ on Cable at the 1.6000 handle! If you’re thinking of shorting the pair, it might also help for you to know that Stochastic is sporting a regular bearish divergence by making lower highs while price is making higher highs. Watch out for a long bearish marubozu because this may just signal that GBP/USD is on its way back to the see if resistance at 1.5600 will have turned into support. On the other hand, a strong break above 1.6000 may mean that the uptrend won’t stop until around 1.6150.