Guest Commentary: MarketVisionTV - Why Trading Volumes Important to Trading EURGBP
Euro Sterling recovered strongly from below 83 to break the 84.00-10 inverse head and shoulder's neckline to confirm the 85.90 head and shoulders target that also coincides with the 2.4 expanding or if you like Reverse Mandelbrot Analogy target. The push to to 84.88 then should be enough for a retrace to the 84.10 neckline being the same distance as the 83.40-45 secondary level. No for two reasons first, the head and shoulders broke on reasonably high volume and therefore doesn't need to retrace to the neckline. Secondly the Analogy places Euro Sterling at exactly on December 12th 2011. And therefore should only see as low as the 84.40 region 38.2% and the pitchfork median line before breaking up to the 85.15 c=a target. Although this should again prompt reaction, we are staying long and however tempting it may be to raise stops to 84.00, they are now 83.45 to avoid that unlikely head and shoulders pullback to the neckline.
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By Ed Matts on MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.