Friday, 1 July 2016

Double Top for EUR/GBP?




I have to admit that this week technical analysis has been difficult. The market is still hugely affected by the UK referendum results and their consequences and rarely forms familiar technical analysis patterns. 

However, if you look at the screenshot of the EUR/GBP four-hour time-frame above you will notice that yesterday the pair formed a very familiar pattern, or in other words, it formed a double top after it tested the resistance at 0.8380 for a second time since Monday. Such a pattern is usually a signal for a impending move to the downside. Obviously, the pair is still testing the same resistance level, so how valid that signal is remains to be seen, but it is definitely something to keep in mind and wait for another signal for a drop to confirm the first one.

4 comments:

  1. It broke above the resistance.

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  2. Very volatile markets, hard to get a hold! Good analysis!

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  3. Strong resistance level, formed by cycling highs.

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