(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

7/19/2010 – EUR/GBP – Price action on EUR/GBP (a daily chart of which is shown) as of Monday (7/19/2010), has reflected the new week’s sharp downmove in GBP/USD and milder upmove in EUR/USD  by continuing last week’s bullish momentum that broke out above 0.8400.

By breaking out above the resistance confluence of the 0.8400 level combined with a key downtrend resistance line extending from mid-March, EUR/GBP has effectively broken a 4-month downtrend. Currently, a key upside resistance target on this breakout move resides in the 0.8600 price region.

If price is able to climb and breakout above that target, a further key resistance target immediately to the upside resides around the 0.8700 price region.

July 19, 2010 – EUR/GBP – Bullish Momentum is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

6/08/2010 – EUR/GBP – Price action on EUR/GBP, a daily chart of which is shown, dropped down to key support in the important 0.8200 price region, a new 18-month low, before making a bounce as of Tuesday (6/08/2010) morning New York session.

This occurs within the context of a steep and accelerated overall downtrend extending from the March highs. The steepness of this downtrend highlights the fact that the euro has been significantly more bearish against the dollar than sterling has in the past several months. While this is true, EUR/USD and GBP/USD are both currently entrenched in strong overall downtrends.

Despite the noted bounce off 0.8200 support in EUR/GBP, this cross maintains a bearish tone in line with the steep prevailing downtrend. Considering this steep downtrend, upside resistance resides significantly in the 0.8400 price region, while any substantial breakdown below the noted 0.8200 support could potentially target further downside support in the key 0.8000 price region.

This important level is not only a significant support/resistance and psychological level, but it also coincides with a 161.8% Fibonacci extension of the prior major downtrend run.

June 8, 2010 – EUR/GBP – Dropping Down is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

5/03/2010 – EUR/GBP – Price action on EUR/GBP, a daily chart of which is shown, has consolidated within a slightly bullish consolidation that has taken the form of an inverted flag pattern.

This occurs within the context of a clear downtrend extending from a mid-March high, and after price broke down below a confluence of two different uptrend support lines. The current flag consolidation also occurs after bearish price action dropped down to key support around the important 0.8600 price region.

If the current inverted flag fulfills its common role as a continuation pattern, a breakdown below the pattern (which would be around the noted 0.8600 support level) would confirm a downtrend continuation and potentially begin targeting further downside support around 0.8400.

May 3 – EUR/GBP – Slightly bullish consolidation is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

4/26/2010 – EUR/GBP – Price action on EUR/GBP, a daily chart of which is shown, has once again dropped down to key support in the 0.8600 price region.

This occurs after price broke down below a confluence of two uptrend support lines, one extending from the June 2009 low and the other extending from the July 2007 low. After that breakdown, price hit its downside support target around 0.8600 on Friday, but quickly corrected back up to re-test the trendline confluence.

As of Monday (4/26/2010), as mentioned, price action has once again descended back down to approach 0.8600 support. If this key support level is subsequently broken to the downside, within the context of the current downtrend, price action could potentially target further significant support in the 0.8400 price region.

April 26 – EUR/GBP – Current downtrend is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

4/21/2010 – EUR/GBP – Price action on EUR/GBP, a daily chart of which is shown, has tentatively broken down below a confluence of two different uptrend support lines – one extending from the June 2009 low, and the other extending from the July 2007 low.

This tentative confluence breakdown occurs within the context of a month-long downtrend extending from the mid-March high, and establishes a new 2-month low for the pair. Now that a downtrend continuation has tentatively been established, a key immediate support target to the downside resides in the 0.8600 price region.

Further bearishness that breaks down below 0.8600 could go on to target further downside support in the 0.8400 price region.

April 21 – EUR/GBP – Downtrend continuation is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)

10/06/2009 – EUR/GBP – As shown on the EUR/GBP daily chart, after making a minor bearish correction in the current steep uptrend, the euro has begun to resume its dominating position over the British pound. Price is currently approaching the 0.9300 high (almost a 6-month high) that was reached early last week with a clear shooting star candle. After that high was reached, the minor bearish correction that followed bottomed out at a key 38.2% Fibonacci retracement level (the low-to-high retracement span being measured from the low on 9/11/2009 to the noted high on 9/28/2009). In the event of a substantial breakout above the 0.9300 uptrend high, price could potentially shoot for further key resistance in the important 0.9500 price region. Current downside support within the context of the strong prevailing uptrend continues to reside in the key 0.9075 price region.

James Chen, CMT
Chief Technical Strategist, FX Solutions

October 6 – EUR/GBP – Shooting star candle is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.

(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)

9/30/2009 – EUR/GBP – Price action on EUR/GBP, a daily chart of which is shown, has made a minor bearish correction within a steep overall uptrend. This occurs after price hit an approximate 6-month high around 0.9300 with a clear shooting star candle (a bearish indication) earlier in the week. As of Wednesday (9/30/2009), the bearish retracement has descended down to a strong support/resistance level in the 0.9075 price region before bouncing back up. The current steep uptrend has been in place since the August lows. Any substantial breakdown below the noted 0.9075 region could threaten this uptrend and hint at a potential trend reversal off the shooting star formation. If, however, price is able to breakout above the 0.9300 high, confirming an uptrend continuation in the process, the key upside resistance target clearly resides around the 0.9500 resistance region.

James Chen, CMT
Chief Technical Strategist, FX Solutions

September 30 – EUR/GBP – Minor bearish correction is a post from the TradingMetro blog, Chart Of The Day. Get a blog like this for free by joining our trading community today. TradingMetro is the forex trading system and forex trading software marketplace for self-directed traders.