Thursday April 1, 2010 - 16:56:45 GMT
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FXTimes: Daily Technical Update EUR/GBP to Test Support after Retracement Pattern
EUR/GBP to Test Support after Retracement Pattern
- Daily: I mentioned that a a break below 0.8850 may lead to further decline to 0.8650. The market just broke below 0.8850.
- Notice in the Daily that the decline essentially completes a
bullish Gartley. The 2-swing projection was each an expanded flat.
Connecting the right tops and we have a declining trendline.
- Now we are set up for 2 alternative scenarios. If the market
reaches 0.8820 area (61.8% retracement and projection swing), look for
some bottoming action.
- Then, the rebound from that will give you a clue. If it is a
pullback, it will be weak and likely stay below the declining
resistance. If it is strong enough to break above 0.89 and the
declining trendline, we can invalidate the short-term outlook to 0.8650.
- The MORE likely scenario is a continued decline to 0.8650.
The stochastic is very bearihs, and the price action is strong. Look
for a quick correction near 0.8820, but the short-intermediate term
target is the 0.8650 area.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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