UR/GBP Stalking Extended Kickback
- Daily: We observed a breakout below 0.8900 earlier this week with the current action still considered as a possible kickback. (Refer to Daily Technical Update 11.18.2009 EUR/GBP).
- The market is extending this kickback as it broke the 0.8950 area today.
- In this daily timeframe, we see that the stochastic is oversold and the pair is due for a correction, so this is not a surprise.
- Also, the bearish mode which started at the end of October has not been invalidated. At the moment, a hold of the pair below 0.9070 is a confirmation that bears are stil in control.
EUR/GBP Anticipating Setup
- 4H: If seems that at the moment, the market is going for another upswing, after the first one that broke above 0.8900 and paused at 0.8950. The market today is continuing this previous leg.
- A swing projection plots the short-term rally to target 0.9020-0.9030, which coincides roughly with the 78.6% retracement.
- This area is where a Gartley would be completed, and where bearish interests may take over. We continue to stalk the EUR/GBP as it nears 0.9020 to see if it will have topping action there.
- If so, we can set up a short-term projection to 0.8800, and a more medium-term target to 0.8700.
Commodity Trading Advisor
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