Q: How has EURGBP responded to crossing above a 50-day average on a Thursday?
A: According to the 21 previous occurrences of this event omitting any repeat occurrences within 10 trading days, EventEdge indicates that EURGBP has shown a somewhat bearish edge that peaks two trading days after the event. Thus, the projected date for the peak of the bearish edge relative to the current event date (Thursday, Sept. 25, 2008) is Monday, Sept. 29, 2008.
EURGBP declines in 86% of the cases (18 of 21) by an average of 0.5% relative to the close on the event date. The average of the three rallies is 0.3%. The overall return of the 21 cases is -0.4%, which, based on the close of EURGBP on the event date (£0.7950), provides a target price of £0.7918.
To see this in EventEdge® click here.
Mickey Schoenhals is an analyst with Markethistory.com.
