Short-Term EUR/GBP Buy Emerging

Last updated 3/12/2010 12:13 PM EST (GMT -5) 1 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

An emerging bullish Gartley pattern (beginning at X1) points to a short-term EUR/GBP buying opportunity if prices manage to dip to pattern completion at .9021. This long setup includes a 127.2% ABCD extension pattern projected to complete near 78.6% of X1-A. Additionally, an intertwined bullish butterfly pattern beginning at X2 adds a layer of confirmation. In order for this setup to remain valid, prices must not move above point C (.9110) prior to entry. As always, be wary of any wide-ranging candles (2-3x's average) and/or price gaps prior to entry as these tend to increase the odds of pattern failure. The current target of .9053 sits just below the 38.2% of the projected CD leg.

Potential Strategy : Buy if prices dip to .9021 risking .9007 targeting .9053. 

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Comments (1)

rstojsic

March 16, 2010 at 09:16 AM ET

note: this particular setup was invalidated on the move up above point C

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