On my Longer Term Charts used last month, I noted the old Ascending Triangle Upper Trendline – then 0.7404 – as support for EUR/GBP. I did not expect it to be tested within the next month but I am pleased to see that it was when the market tumbled. It is also coincident just about with the Feb 2003 low at 0.7402 & only a few tics away from the actual 2003 low at 0.7387.
All this is good and we bounced up but the question is what is next? Well, last week’s action suggests a possible Bear Flag which would tie in with the general bearishness of the market. However, last Thursday we had a Key Reversal Up but with no follow through on Friday, the last day of the month. So – the question is stated on the Daily Chart above – there is a Key Reversal Up but is it still a Bear Flag? At the moment would venture the KR Up is losing power and the Bear Flag is more dominant.
So where does it go? A potential target would be 0.7250 – therefore the bullet point stays the same and we watch!
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