TRADE UPDATE: Potential EUR/GBP Invalidation

Last updated 11/3/2009 4:42 PM EST (GMT -5) 0 Comments - Add your comment

FX360 Technical Analyst Staff

Technical Analyst, GFT

Last week, an emerging EUR/GBP buying opportunity was highlighted based on an emerging bullish Gartley pattern projected to complete near converging Fibonacci support near .8820 (see " EUR/GBP Buy Approaching, Attractive Risk/Reward "). Prices, at that time, were testing some converging fib support near .8930 (38.2% of XA and 127.2% of BC), and posted a relative small rally to about .9060 (just under would-be T2). This relatively shallow rally presents a possible trade invalidation measure if prices manage to make new lows under .8900 while holding the recent top near .9069 since this would suggest a potentially strong bearish continuation may be in progress. On the flip side, if prices fail to make new lows and begin to rally off current .8930 support we may have a selling opportunity near .9100-.9170 on what then be an emerging bearish Gartley pattern with a potential reversal near the current buy of .8847. More on that setup if this hypothetical rally does ensue...

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