Forex4you Technical Analysis 20/07/10

GBP/USD: Technical Analysis

The pound formed a 2-bar reversal pattern top last week and since then prices have fallen. While momentum remains robust it is possible the top represents an exhaustion move. It also occurred near the high of the preceding 4th wave of a lesser degree at 1.5525, which was a rough target for the end of this rally. Initially it is quite possible that prices will fall to the lower edge of the channel for the move up at 1.5120.

EUR/USD: Technical Analysis

Prices made highs of 1.3025 this morning and it is possible a temporary top may be in place. There is considerable resistance in the 1.3050 area and a shooting star candle high on the hourly chart. Even if prices resume their uptrend they are highly unlikely to pierce the 1.3102 pivot level this month. A possible short term decline could be about to begin although there is still no confirmation yet from falls in actual price or momentum. A short term sell off might be expected to reach 1.2915 initially.