EURGBP--Sunday, September 7, 2008
It now looks as if EURGBP has built another base between June and August for this latest move up. The high on Thursday (from which is rapidly retreated) was at the 1.618 delta level of this new alpha-beta base. The 2.618 target would be around 0.8425.
It is useful to note that while the recent highs at which the euro has traded against sterling have been noted as "all time highs," that only goes back to the official creation of the euro as a hard currency in 1999; if you go back to the early 90's and construct a chart using a "synthetic" euro based on the DM and the ERM, this pair traded above 0.9000.
Furthermore ,on a monthly chart, we can find a higher level pattern which would also show a likely target around 0.8425.
