Thursday, April 2, 2009

Head & Shoulders on Eur-Gbp charts

eur gbp 240 min 1.4.09

As can be clearly seen on the 240 mins chart of Euro-pound (Eur-Gbp), a potential head and shoulder pattern has formed. What is now needed is a decisive break of the support line. If such a break does occur one should take short positions in anticipation of a decent size downmove. Eur-Gbp has been in a short term uptrend in the long term downtrend after peaking at .98 in mid December. Thus we will potentially continue with the major trend now after seeing a very very sharp rally over past few weeks.

Which would imply then that price should ultimately dip below the intermediate low marked on the daily charts below.

eur gbp daily 1.4.09