Bull trend in the US$ continues to unfold

British Pound has completed major top, the Euro could be next

On June 15 I posted a long-term analysis of the British Pound ($GBPUSD $6B_F) wherein I laid out a case for the forex pair to drop substantially (i.e., a stronger USD).  The H&S top on the daily chart identified in that post has now been completed, setting a target of $1.5370. The risk on short positions is to above the June 22 high at 1.6263.

The Euro ($EURUSD $6E_F) is also topping, but the top has not yet been completed. The daily chart exhibits a possible 5-point symmetrical triangle reversal pattern with a stunted fifth point. The stunted nature of the fifth point either means that the triangle will undergo further developement or that the triangle is extremely bearish because the fifth point rally was so weak. This is one of those questions for which only time will reveal the answer. A close below the June 16 would complete this pattern and establish an initial target of 1.3140.

Note on the daily $EURUSD chart the 12-month support line. Any decline will need to content with this development, although you need to know I am not a big fan of trendlines. I think trendlines are highly over-rated by novice chartists, even though a market may from time to time hold a trendline.

Dislaimers:

1. I am presently short the EURUSD and GBPUSD in my proprietary account.
2. I am a pure chartist. I do not pay attention to fundamental or macro-economic conditions.

Markets: $EURUSD $GBPUSD $6E_F $6B_F $FXB $FXE $UUP

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Postnote: I posted a bearish potentially bearish analysis of the USDJPY on June 22. As pointed out, a close by the $USDJPY under 80.00 is required to trigger that bearish analysis.