EURGBP – Potential Rising Three
31st August 2015
Further Gains Expected this week.
Last Monday saw gains continue the strong demand seen over the preceding 3 weeks. But that day’s upside of almost 1 ¾ big figuress was not maintained and the subsequent 4 days all produced net losses to leaves EURGBP virtually unchanged into the week’s close.
Despite the uncertainty that result suggests the limited nature of the setback from the 200 day line is coupled with a rising Keltner channel and the support of the 13 day average to leave signals for sentiment mildly positive.
Another reason behind this call is that there is a chance that the market is forming a Rising Three pattern. Of course given that last week ended with 4 down days and this week has begun with a UK Bank Holiday, that positive pattern cannot be a textbook one. Nonetheless a renewal of demand would confirm an imperfect version of a Rising Three for EURGBP.
Confirmation would be a move through Friday’s .7356 top with the market then exposed to .7419, last week’s high.
Currently we’re looking for setbacks to be limited close to .7179 but only a move below .7103 negates the bullish scenario.
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