29 Nov 2016
Inverted hammer kept EUR/GBP bears awake last night
An umbrella line on the EUR/GBP daily chart has been confirmed by yesterday's close.
An inverted hammer formed two days ago already provided a tentative clue that the support was near. However, it was not until we had yesterday's close above the hammer's real body that we received a visual reinforcement that the support could be solid.
Those who shorted at the close of the inverted hammer are now in a losing position. The longer the market hovers above the inverted hammer's real body, the more likely those shorts will cover.
This could spark a short covering rally that could lead to bottom pickers going long.
An inverted hammer formed two days ago already provided a tentative clue that the support was near. However, it was not until we had yesterday's close above the hammer's real body that we received a visual reinforcement that the support could be solid.
Those who shorted at the close of the inverted hammer are now in a losing position. The longer the market hovers above the inverted hammer's real body, the more likely those shorts will cover.
This could spark a short covering rally that could lead to bottom pickers going long.