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.
It broke above the resistance.
ReplyDeleteVery volatile markets, hard to get a hold! Good analysis!
ReplyDeleteStrong resistance level, formed by cycling highs.
ReplyDeleteExcellent analysis.
ReplyDelete