Tuesday, April 7, 2009

EUR-GBP Head & Shoulders Pattern

EUR-GBP 240 mins chart

eur gbp 240 mins 7.4.09

A Head & Shoulders pattern is very clearly visible. The downside break happened sometime last week after which consolidation was going on in abroad range of around 100 pips. Today we have seen a fresh offensive on the downside, with resistance coming off the trendline from .94 swing high around the 25th of March. That trendline has acted as resistance thrice now, and seems will guide price movement in days to come. There is a minor support at .9036 off which we saw two bounces last week.

Any rallies off it should be sold. The pattern suggest target is below .8850 , which should come about over the next few weeks.