EUR/GBP approaching breakout – Big Cup and Handle on the way
Actually, we are observing very intensely the currency pair EUR/GBP. There, for the next future as well some excellent possibilities at the long side are coming up. Above all, within a few weeks we will be able to rely on a quick and nearly 100% secure up move of that pair.
Merely fundamentally Great Britain is stuck in a long-term recession. Compared with the Euro Countries, the economic power there is shrinking much faster, thus stressing the British Pound. Looking at the original Weekly GUNNER24 Up Setup from the year 2007 which clearly sets us the trend we realize the following:
In the Weekly GUNNER24 Up above where you can see the summary of the trades of recent months you will discover the successful breakout of the important 3rd double arc six weeks ago. During the last two weeks, the price rebounded from the downwards coming diagonal of the actually passed square and obviously found a very strong support at the horizontal square line last week. Since the 3rd double arc was broken significantly next target will be at 99.80. The price is narrowly under the acceleration zone which always promises a quick move which we want to take with us at any rate.
The may call it Saucer Bottom, W-Bottom, Cup and Handle, Double Bottom ==> All bullish!!
The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. The Cup with Handle is probably one of the most promising chart formations which should back our fast upwards move.
Yesterday, the pair finally rebounded from the actual Gann Angle producing an enormous reversal candle. Thus, a new GUNNER24 Up Setup started.
With the Friday low the price landed on the Gann Angle anchored in the setup which has offered support twice already (green marks). On account of the rule that with the Gann Angles the price should show a similar performance like the time before when the Gann Angle was touched we have seen a strong rebound, again...
The price closed yesterday again within the lines
of the double arc which according to the rule, will implement a break
of the double arc towards the main trend. The newly beginning GUNNER24
Up Setup should enclose at least 3 candles so we can be sure the coming
up move will be lasting. The Friday candle could be a kiss of
death candle and a sharp down move could be possible, so work at the
stop loss point with the reverse and double technique!
Watch out! Possibly the pair is not going to initiate the really great up move on weekly basis before the week after next week because on daily basis the Handle is not finished.
Finally, let's have a quick look at last week stock market and the copper breakout on weekly basis.
Obviously, the break out of the 2nd double arc at the moment is not really lasting. The price rise is braked by the dynamic resistance zone of the square above. The longer that state of consolidation lasts the more likely becomes a fast move since a lot of energy for that move is emerging because of the narrow price margin between the upper double arc line and the horizontal limitation of the square.
Our strategy continues being valid:
If next week closes beyond 1089 we will open a long position on weekly basis. On daily base we are long since 1036 and 1064. Our stop loss on daily basis is 1065 (upper line of the 2nd double arc).
At first glance, in the original weekly chart copper has broken the 5th double arc. At the spot marked in the chart we may place the new GUNNER24 Up Setup. Anyway I don't consider the break out on lost motion basis as to be effective above all if we look at the Monthly GUNNER24 Up Setup.
The move last week stopped exactly at the lower line of the 2nd double arc. Corresponding, probably the upper line of the 5th double arc in the Weekly GUNNER24 Up will be tested back again (287-290) before the final breakout succeeds.
All the best!