Friday, October 12, 2012

EURGBP Triangle

Pair EURGBP is carving out a triangle formation on daily charts. 

Along with upper trendline, it got 200MA. This 200MA has resisted price before. Although there was a false breakout and close above 200MA but then the price was resisted by descending trendline. I am expecting this area to provide good resistance on any up moves. EURGBP Daily Triangle
EURGBP Daily Triangle
On the downside we got 100MA and lower trendline. 100MA has supported the price previously but only at very few occasion. 

Downtrend in EURGBP looks strong and this triangle should be viewed as consolidation area. Price can go either side. On upside break of 200MA & trendline, I will wait for a conformation break of previous highs to go long. 

On break of lower trendline, I will go short on a daily close below it.

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