Forex Trading Setup – Stalking EUR/GBP for Topping - International Business Times

By Fan Yang | September 27, 2010 19:10 GMT

Fan Yang

Currency Analyst, Commodity Trading Advisor

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Forex Trading Setup September 27, 2010
Tools:
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Multiple Time-Frame Analysis Stalking EUR/GBP for Topping

 

Day and 4H: The EUR/GBP may have turned bullish, but it is in a correction decline. The current one is the second swing as we can see in the 4H chart.This swing is projected to 0.8430 area, between 50 and 61.8% retracement of the most recent upswing.Let's take a look at a scenario where the market stays bullish. The rising trendline, and the rising resistance of the Sept13-21 triangle both project near this 0.8430 area, so expect support here.Then, another bullish swing should bring the pair to a very strong resistance zone near 0.86, where a more significant correction may take place.This 0.86 area is a 161.8% expansion, and 50% retracement as well as the SMA 200.If the market is still bullish, the farthest this pending downswing from 0.86 should be projected to is the 0.8400/0.8350 area.A rally from 0.84 can target 0.8730 (61.8% retracement).

Fan Yang CMT CTA
Currency Analyst

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.

All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.

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