EUR/GBP, NZD/USD, EUR/JPY Breaking Double Top

Have you noticed the breaking double top in the daily chart of EUR/GBP? It seems the Euro bears have found enough confidence to push the pair below the neckline of a double top pattern. On the way, it also went past the major psychological level at .8400. The pattern was about 400 pips high, which indicates that the breakdown could be of that size too. However, as the breakout is not ye confirmed, you should not place short orders already. You should wait a bit more to confirm the reversal.

Another breakout is happening in the daily chart of NZD/USD. Unlike the previous pair, this pair is breaking a ranging channel. As a triple bottom pattern is created in the chart, it looks like the Kiwis became tired of confining the NZD/USD within a range. NZD/USD has already gone past the neckline and seems all ready to test the previous swing high at .8600. Nevertheless, it is still a long way to go and you should not take any chances without ensuring the breakout.

If you are a trend trader, just have a look at the 4 hour chart of EUR/JPY. A nice uptrend channel has formed in that chart. After finding resistance at the upper part of the channel, the pair is now hesitating in the middle. Stochastic is moving down, which indicates that EUR/JPY could retest the channel support. A bounce from the support will bring the pair back to the middle or to a new resistance at somewhere around 134.00.

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