Forex Technical Update June 23, 2010 EUR/GBP Testing Support at 0.8220
- Daily: The EUR/GBP pair looks already in its decline. We may be in a sub wave 3 of wave 3 kind of scenario. The strength of the decline confirms.
- The break below channel support, which is already declining, also confirms.
- This simply implies that the subsequent pullback for wave 4 should not go above 0.8650. It also implies we are in a strong decline.
- 4H: The 4H chart shows that the momentum is very strong. It is also in the oversold zone, so we may be due for some consolidation or correction. Seeing that the pair is at a previous support level, a correction can be expected. However, my opinion is that there will be an eventual break below. The strength of the decline, and the possible wave count gives me this outlook.
- Therefore, I will be waiting for a pullback towards 0.83, but one that does not break above it.
- The target can be a channel breakout projection to 0.8050.
Fan Yang Currency Analyst Commodity Trading Advisor
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