$orex Technical Analysisrong>

As the $uros to poundsr continues to move away from the recent double bottom formation in the 0.845- region, the strong rebound of the last few days may now be coming to a close as we begin to aproach the strong resistance directly ahead, with the first of these clearly defined at 0.88. Indeed in trading today it appears as thought the pair may have already run into this barrier which appears to be preventing a further rise in the currency pair, and should the candle end the trading session with a deep upper shadow as seems likely, then this could signal a short term reversal lower towards the end of the week. This level is now key, as it defines the start of the deep resistance which spreads over 300 pips, and if we are to see the pair reclaim the 0.90 price handle and above, then we will need to see a break and hold above this solid region of price action in due course. If this does occur, then we may well see a re-test of the 0.93 region in due course, but this will require a concerted effort from the market, and judging from today’s price action, it may be that the market has simply run out of steam, and hence we may have to wait for September to arrive and a fresh injection of trading volumes and momentum to drive the euros to pounds pair higher once again.

$undamental Forex Analysisrong>

With no $undamental newsthe economic calendar in the UK today, the German IFO business climate figures provided the main focus of attention, coming in at 90.50 against a forecast of 89.10 indicating that German business confidence rose for a fifth month in August, suggesting Europe’s largest economy will gather strength after shaking off its worst recession since World War II.

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