EURGBP--Monday, September 28, 2009
Last Monday I posted some charts showing a pattern with a 2.618 extended target for EURGBP around the 0.9075-0.9090 region. There was potential for some topping action in this pattern, but the potential didn't really pan out. All we got was a few days backing and filling, with a low last Wednesday about 100 pips below the target level. Then on Thursday we clearly broke through the Fibonacci target area.
The fact that in this rally, ongoing since early August, we have had slight pullbacks roughly--or a little below-- the 1.618 and 2.618 extended levels gives some evidence that the Fibonacci pattern is valid. The next target in this pattern would be the 4.236 (phi cubed) level. And that would be in the area of 0.9500, or a little below.
