EUR/GBP 1H Chart Emerging Pattern: Channel Down

by Admin

EUR/GBP has formed a Channel Down pattern on the 1H chart. The pattern has 56% quality and 100% magnitude in the 150-bar period.

The pattern began on 17th of April when the pair peaked to 0.8637; at the moment it is trading at the 20-bar SMA at 0.8417. Except for the peak in the middle of the pattern trading volume seems to be holding at the same level in the length of the pattern. The Stochastic indicator sends buy signal on relevant horizons suggesting that the pair should pick up moving towards the pattern’s resistance. Long traders could focus on the daily pivot (PP)/Bollinger band at 0.8423/29, daily pivots at 0.8447 (R1) and 0.8472 (R2), pattern’s resistance/daily pivot (R3) at 0.8489/97 and 20 and 100-day and 200-bar SMAs at 0.8514/18.

Short traders, who expect that pair will continue moving along the pattern’s support, could focus on the .Bollinger band/daily pivot (S1) at 0.8401/398, daily pivot (S2)/pattern’s support at 0.8373/65, daily pivot (S3) at 0.8348 and 200-day SMA at 0.8292.

EURGBP

USD/PLN 1H Chart

Emerging Pattern: Channel Up

Both rising trend-lines that form a Channel Up pattern on a 1H chart have already been confirmed on several occasions, though lately the price has been constantly challenging the upper boundary of the corridor. A majority (74%) of market participants believe the bullish resistance line will hold and eventually initiate a decline, even though technicals are largely pointing upwards.

USDPLN

USD/DKK 1H Chart

Emerging Pattern: Channel Up

Throughout the last 141 trading hours the U.S. Dollar has been generally appreciating, resulting in a Channel Up formation. At the moment the currency pair finds itself near the support trend-line, implying a rally later on; however, traders are undecided with respect to the future tendency and indicators are giving ‘sell’ signals.

USDDKK

EUR/USD 1H Chart

Emerging Pattern: Channel Down

Underperformance of the Euro relative to the greenback has resulted in a 141-bar Channel Down set-up on a 1H chart. While the shares of the bulls and bears are nearly equal, the technical studies are in favour of a counter-trend move, i.e. a surge, but the price will have to push through 1.3056 and 1.3080 in order to confirm its bullish intentions.

EURUSD