http://img14.imageshack.us/img14/7956/gbpchf.gif
Price attempted to break out of the long term wedge it is confined to, but today's candle begs to differ. One thing that throws me off is the lack of volume on a move like this...
Price action is price action, and we have a bearish engulfing candle. Expect price to now test the bottom of the wedge, or the lower trendline. I have some S/R there too, making for support confluence, so look for valuable price action on this level.
The lack of volume we see in this move shows a lack of conviction from the sellers I would think, leading me to believe buyers will jump in on some valid PA at support. Me thinks the break will eventually be to the upside...
Price attempted to break out of the long term wedge it is confined to, but today's candle begs to differ. One thing that throws me off is the lack of volume on a move like this...
Price action is price action, and we have a bearish engulfing candle. Expect price to now test the bottom of the wedge, or the lower trendline. I have some S/R there too, making for support confluence, so look for valuable price action on this level.
The lack of volume we see in this move shows a lack of conviction from the sellers I would think, leading me to believe buyers will jump in on some valid PA at support. Me thinks the break will eventually be to the upside...
Bang.