I believe we are are at pause here before we see some further downside movement. Notice a neat head & shoulder pattern on the RSI which has just about broken the neckline. I'm going for a 100 pip target.
The price has consolidated into a rectangular flag since Tuesday's 200 pip drop and we could now potentially see the price continue to move lower. If you take into account the upper blue trend line for the stop area the risk reward ratio is around 2 with the target, as the width of the the rectangle, 120 pips lower to around 1.3880.
We have an inverted head & shoulders pattern that has formed on the 240s and daily. We have now broken the neckline so once we have a full trading range above this line or the neckline acts as support, a long trade could be worth while. From a measuring perspective the height of the head is 218 pips thus this could offer a nice risk reward ratio of around 4.5 with...
We appear to be at the top the red trendline and I believe we will now see a move back to the 0.6823 level. On the daily chart the 10MA is acting as resistance which has been touched last couple of days. Price broke through the September low and is now back to that level, I think we could now potentially see a new low in the mist.
Initial target 0.68, stop loss...
Opening short at the 20MA level with a tight stop loss just above it as this has been acting as strong resistance for the duration of this down movement. I believe there is further downward movement to be had with the Daily RSI low at 17, this is still not as low as the Sept 14 reading of 13.
Weekly Chart RSI has only just gone through 30.
2009 low hit 1.35
Daily EUR Chart is in a down trend and has recently hit the top of the channel. The price has just broken through a trendline and the 20MA. MACD has also crossed. Initial target. 1.075, Initial stop 1.095
Today's bar closed within the Bollinger band where previous have closed outside, so despite being a new absolute low relatively it isn't, thus potential reversal.
On the weekly chart the lower trend line was touched today joining up with the low of April 2015 and January 2009 thus a point of strong support.
240 we have a huge amount of positive divergence on...
Based on the daily chart, the pound is strugglingly to pass Fib 0.5% as it continues to move sideways but a break above this level could see a move higher which based on this 240 chart could be a strong possibility as the downward trendline and neck line has been truly broken.
Roughly measuring the height of the head to the neck this could mean around the 1.55 area.