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FOREX Trading: GBP/USD Significant Breakdown Possibly Underway
Afternoon Technicals (all charts)
FOREX Trading and Technical Analysis Observations
Markets, Euro crosses in particular, are trading in violent ranges. Such conditions aren’t for everyone but nimble traders can take advantage. All ideas are posted via Twitter @JamieSaettele.
The EURJPY has backed off of the highs after exhausting post 8:30 US data. Given the extreme momentum readings at the high (Monday), more corrective activity is probably needed. Markets can correct themselves in time and price. In other words, it’s possible that price contracts into a triangle. I’m short from this morning and looking towards 11850 today and 11750 tomorrow. Watch the ‘50s’ in this market. 11650 (low was 11646), 11750 (yesterday’s close was 11743) and 11850 (pivot this morning in Europe was 11841) are all levels to consider for managing the trade.
The EURUSD rally may compose wave B of an A-B-C correction from the top. If this interpretation is correct then price will drop below 13256 before the larger bull trend resumes. 13200/30 is estimated support on a drop below 13256.
The GBPUSD trendline break has me looking towards the November low at 15822 and the 4 year (has it been that long?!) trendline near 15700.
EURJPY – 60 Minutes
Prepared by Jamie Saettele, CMT
EURUSD –Daily
Prepared by Jamie Saettele, CMT
GBPUSD – Daily Bars
Prepared by Jamie Saettele, CMT
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele
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Jamie is the author of Sentiment in the ForexMarket.
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