Sterling Euro looks poised – for a further weakening of Sterling
The Technical Trader’s view:
MONTHLY CHART
After the bull surge for the Euro from the completed Head and Shoulders Reversal the market has been consolidating in a large triangle since the beginning of 2009.
Triangles tend to be continuation patterns.
Look closer.
WEEKLY CHART
The detail of the possible triangle is clearer here.
But it is far from completion.
Within the Triangle there is a possible bull falling wedge
Look closer still.
The market is on the point of completing that wedge – a confirmed close above 0.8887 in the next few days should see fresh buying.
Notice the 0.8838 resistance has been overcome – that was quite a considerable bull feat ( it was a 50% retracement resistance too) and suggests the bulls have a good deal further to go on the upside – entailing a clear break of the wedge. Note too that the 61.8% Fibonacci is coincident with the break of the wedge adding to the bull energy on a breakout.
Mark Sturdy
Seven Days Ahead
For the complete and illustrated version of this and future Updates be sure to sign up at www.sevendaysahead.com
