Best Financial Markets Analysis Article From the early March high the slide back in EUR/GBP has turned from what might have been a simple correction in a larger bull move into an early indication of a medium term bear phase, though not, as yet, confirmed.

The FX Trader’s view

WEEKLY CHART:

The long term 38.2% level has once more been violated, together with certain support lines that include the one shown.

This initial bear break still needs the confirmation from a break of the Jun-09 low just under 0.8400.

Next focus would then be on the 0.8168 50% pullback level, but with lower levels likely thereafter.

DAILY CHART:

The cross has now neared the Jun-09 low, which lies just above the bear channel base projection.

S/term support around here would not surprise, but recovery attempts are not currently expected to be long-lasting – already recent rallies have struggled near the 0.8800 level, and the higher 0.9000 area (channel top) does not look achievable now.

Lower bear projections will be calculated following a clear break of the 0 8400 area; meanwhile we keep in mind the 0.8168 50% level from the long term chart.

Mark Sturdy
John Lewis

Seven Days Ahead
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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Comments

keith
29 May 10, 08:42

supercharts

I notice your charts are using Supercharts, 1997. I have my supercharts which I haven't used for 8 years, so that is a refreshing thin to see professionals still using it. Where is your data obtained from? and how does EUrGBP correlate with the EURUSD. Also, if you took the fib extension from the top you will se a confluence of level where the pair would find support.

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