Tuesday, May 26, 2009
EUR/GBP, H4, 6 Mar - 6Apr
The textbook head-&-shoulders reversal pattern seen here took more than a month to form. But when such a formation takes place, it pays big. You might not exactly see the resemblance to human anatomy, but you get the idea of three peaks, the centre one of which is higher than those on either side of it. (In Europe it's getting a little trendy to be wearing coats with exaggerated shoulder padding to emphasise the silhouettes; those make a person look more like this so-named chart.)
At the right shoulder is where most of the action and hopes are. Should the prices fall beneath the neckline of the right shoulder, you're in for a wild ride.