Questions from Students (Wk 16)
This week, we received a question about EURGBP.
Question from Ben
I hope to get some opinion & views from you on shorting EUR/GBP now as i’ve spotted a Double TOP and price has broke the neck line @0.7224 PINK LINE.However, data is quite heavy for GBP today at 4:30pm, Best to wait for those datas to be out & see if it retraces back to F6 Fibo ??Immediate support & resistance spotted.
Reply from Jerome:
Personally, I’m not too convinced that it is a double top.
- Generally chart patterns signal a change in trend and is usually seen at the tops or bottoms. Hence in this case, I wouldn’t be too convinced it is a double top pattern.
However what you can see is that price has closed below previous 3 weeks low and is also below previous month low.
- Agree that the upcoming news might cause some movement in this pair, ideally allowing price to pull back and re-test the resistance zone.
- Ultimately, if price can remain below the resistance, it has a good chance of heading lower.