EUR/GBP may find near term resistance

20. January 2016 · Write a comment · Categories: EDGE Chart of the Day · Tags: , , ,

Just a couple weeks back, you may recall reading that the EUR/GBP “snapped a major trend line” and since then the EUR/GBP continued higher by a couple hundred pips. However, today another trader (Rick P, Wizetrade trader) identified that the EUR/GBP is retesting a broken trend line from back in 2000. We also noticed it is testing previous horizontal support (July 2012 and Jan 2015) which is current resistance (today). See below:

1-20-16EURGBP1

If you look at the daily chart below, the current candle is developing a shooting star. I understand there is a lot of time today before the candle closes, but some sort of near term reversal candle may develop:

1-20-16EURGBP2

Although the EUR/GBP may head higher in the future because of “Brexit” fears, or perhaps expectations of a BOE rate hike continue to push out towards 2017. In the very near term, we could see a pullback towards the .7500 pence level again.

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am looking to establish a EUR/GBP short in the next 24 hours

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Guppy Touching Resistance from 2008 – GBP/JPY

15. June 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

The GBP/JPY (AKA the Guppy) probed previous weekly support dating back to March of 2008. But if you look a little closer, we are also probing the 161% Fibonacci extension from the 2009 highs to 2011 lows. See below:

6-15-15GBPJPY

If you look even CLOSER what you will notice is that we also just overshot (slightly) the 161% extension of the February highs to the April lows:

6-15-15GBPJPY1

The GBP/JPY is facing some very strong resistance and may be due to pullback from current levels.

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am establishing a short position at current levels today

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