Two major pairs feature very interesting technical patterns: Cable sees an inverted head and shoulders pattern while EUR/USD is experiencing a double top (according to our analysis) and a double bottom according to RBS.
Here we go:
Here is their view, courtesy of eFXnews:
GBP/USD technical set-up has turned bullish amid an inverted Head and Shoulders pattern and a bounce from a key support area from last week, notes RBS.
“The pair has not moved much over the past week, but indicated we are likely to be on the right side, as a weekly chart saw an inverted advance block pattern finished by a Doji candle at a time of MACD staying positive,” RBS argues.
“The above-mentioned signals confirm the next move is likely to be to the upside, targeting 1.6070 onto 1.6430 stopping on a close below 1.5100,” RBS projects.
Turning to EUR/USD, RBS maintain the same bullish stance, noticing that the pair formed a local base after bouncing from the 1.08 support level, being the 38.2% Fibonacci retracement from the March impulse wave, and forming a double bottom pattern.
“Yesterday’s price action confirmed my view by the Marubozu candlestick pattern. This pattern has a pivot point at 1.1194 (the midpoint of the candle’s body) providing a key support level,” RBS notes.
“Hence we keep the same view for a move to the 2 nd target of 1.1644 with further test of 1.20-ish area possible,” RBS projects.
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