(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; downtrend line in red; uptrend lines in green; chart patterns in white; 50-period simple moving average in light blue.)
3/05/2009 € EUR/GBP € Price action on EUR/GBP, a daily chart of which is shown, has formed a sizeable triangle pattern consolidation. This occurs within the context of the general downtrend that has been in place since the 0.9800 peak was reached at the end of last year. The bottom border of this triangle also coincides with an uptrend support line that has been in place since the late October lows around 0.7700. If this triangle is to be considered a continuation pattern, a breakdown below the bottom border of the triangle, which would coincide with a breakdown of the long-term uptrend support line, should first target support in the 0.8650 support/resistance region. Conversely, any upside break of the triangle should meet initial resistance around the 91.25 region.
James Chen, CMT
Chief Technical Strategist
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