The Fibonacci Walk
This is a very interesting iteration of Fibonacci that may be playing out in front of us next week.
First, of note is the economic calendar for the early portion of next week:
The air is ripe for some very fast moves on both of these currencies. EUR/GBP seems as though it may be lining up nicely around a potential resistance level.
Notice how - on the chart below - the various resistance points seen on EUR/GBP as the pair continues this downtrend.
The first resistance - in Orange - taking place at the 76.4% level. Second resistance taking place on the .618, 3rd at the .50 - and now it seems as though we are lining up around the 38.2% retracement.
After noticing this pattern - one might notice that we've had a spike above that 38.2% number.
Rather than trying to 'predict,' this - I'm going to wait for the pattern to present itself. Looking to enter below the .8733 level if we get some good movement down on the pair as the bullish trendline that's recently formed gets broken.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.