I had the bullet point above as fully bearish last month for EUR/GBP & that is exactly what we got! We dropped down and for reasons that I cannot quite work out still (apart from roundophobia aka fear of round numbers…) the market stopped just ahead of 0.7000 & reversed back up! So far we have had a pretty nice V bottom but then we’ve only started to hit major resistance from over 0.7300 & even then the real stuff only starts between 0.7388 – 0.7413.
This area has been tested but the market had a possible Tweezer Top and rejected it only to then reject the support at 0.7241 with a similar pattern that could also be a Bullish Harami. We are again approaching the 0.7388 resistance again but I am not sure what it will be – Bullish Hammer or Double Top… or neither.
Nevertheless, the question mark on the bearish bullet point is appropriate and until we have consecutive closes outside 0.7413 or 0.7241 it may still just bounce back & forwards. In that case the bullet point next month will move again! In the meantime, support at 0.7316 (dynamic), 0.7241, 0.7171, 0.7134 & 0.7087.
Resistance beyond 0.7413at 0.7443, 0.7455, 0.7531 – 0.7538 & 0.7580 (dynamic).
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