Tuesday, April 8, 2008

British Pound Accelerates Lower: Decline Should Continue

A triangle may be unfolding in the EURUSD. If so, then price would come lower in wave E towards 1.5575. The GBPUSD decline has accelerated, which is expected to continue. The USDJPY is still expected to test 103.75/104.00 before forming a top.

04-08-08techs1

04-08-08techs2

Near term, both legs of the down-up sequence from 1.5904 are not clear impulses. This makes it likely that a larger correction is underway; either a triangle or a flat. It is possible that waves A through D of a triangle are complete and that wave E is underway towards 1.5600 or just below. E waves of triangles are usually sharp and have a tendency to penetrate the lower triangle line. The triangle line crosses through 1.5593 tomorrow. It does remain possible that a larger correction is underway.

Visit our recently updated Euro Currency Room for specific resources geared towards this currency.

No comments: