Ok it is time to have a another look at EUR/GBP as the Bank of England expected to raise rates this week and here we are inching down to the 2020 low at .8275, which is looking exposed – failure here will target the 200-month ma at .8182. I have been a technical analyst for over 30 years and can categorically state that over time, markets tend to mean revert to their long-term moving averages. It will be interesting to see if there will be enough impetus to break this key support this week.
However there is another Sterling cross that is even more interesting….. The GBP/JPY chart, which over the past couple of months has eroded its 2007-2021 downtrend and sits this week just below the 158.22 October 2021 high. We suspect to really start to see some upside traction on this pair we will need to regain the 160 zone (50% retracement of the move 2015-2016 lies at 159.89). There is a huge base on this one as well approx. 157-127, which suggests an ultimate target of somewhere around 187 (all I am doing is using the depth of the base to give me a vertical upside measurement from the break point (which the high in 2018). Initial targets above 160 are 168.00/40 and 180.00/50, the 61.8% and 78.6% retracements.
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However there is another Sterling cross that is even more interesting….. The GBP/JPY chart, which over the past couple of months has eroded its 2007-2021 downtrend and sits this week just below the 158.22 October 2021 high. We suspect to really start to see some upside traction on this pair we will need to regain the 160 zone (50% retracement of the move 2015-2016 lies at 159.89). There is a huge base on this one as well approx. 157-127, which suggests an ultimate target of somewhere around 187 (all I am doing is using the depth of the base to give me a vertical upside measurement from the break point (which the high in 2018). Initial targets above 160 are 168.00/40 and 180.00/50, the 61.8% and 78.6% retracements.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.