EUR/GBP Large Triangle Setup

Friday, 05 August 2005

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Written by Sam Shenker Technical Currency Analyst
Trading is the one of most lucrative and most challenging endeavors a person can undertake, it can be very rewarding both emotionally and financially. Traders always looks to profit from the move in the market, whether up or down, a trader is like a hunter, always on a lookout for that specific setup that has the highest probability of achieving profit targets. Finding profitable trades presents constant challenge to both novice and experienced traders. As such we would like to welcome you to weekly chart analysis where charts are analyzed in detail, looking at both upside and downside scenarios.

Setup:

· EUR/GBP continues to trade within a large triangle
· Momentum analysis point to a potential move toward the Key 78.6 Fib
· High probability setup points to a move toward the triangle’s lower boundary

Key Levels - Current Price: .6949
LevelTypeSignificance.6634
Support
Triangles lower boundary
.6713
Support
23.6 Fib of the 78.85-92.11 CHF rally.6817
Support
38.2 Fib of the 78.85-92.11 CHF rally.6900
Support
50.0 Fib of the 78.85-92.11 CHF rally.6676
Resistance
Triangles upper boundary
.6984
Resistance
61.8 Fib of the 78.85-92.11 CHF rally.7103
Resistance
78.6 Fib of the 78.85-92.11 CHF rally
Weekly Chart 07/29/05


Daily Chart I 07/29/05


Daily Chart II 07/29/05


Daily Chart III 07/29/05


4 Hour Chart 07/29/05