EURGBP : Collapses On Shooting Star Formation

EURGBP: Having printed its highest price since Mar 27'09 early Tuesday, EURGBP backed off that level and traded lower to close at 0.9315 forming a shooting star candle (top reversal signal) on Tuesday. Although seen turning off its intra day low today, the mentioned candle formation is ominous of a halt temporarily of its ST uptrend and a likely beginning of pullbacks/correction. If that plays out EURGBP will target the 0.9299 level, its Sept 27'09 high where a reversal of roles is expected to occur. Further down, supports are located at 0.9158 level, its Oct 08'09 low and the 0.9076 level, its Sept 30'09 low with a violation of there pushing the cross towards the 0.9000 level, its psycho level followed by the 0.8868 level, its May'09 high. On the upside, the 0.9410 level printed on Oct 13'09 will come in as the initial resistance with a loss of there setting the stage for the resumption of its short term uptrend towards the 0.9499 level, its Mar'09 high and then the 0.9803 level, its Dec'08 high. On the whole, with a collapse on a shooting star candle seen, EURGBP could be shaping up for corrective pullbacks.

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