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Euro Pound Consolidates Further!

You must be fed up looking at this chart! With all the moving averages having converged it is almost impossible to tell one from another, and without wishing to state the obvious, the current pennant continues to form in an ever tighter pattern on the daily chart. My view of the currency pair has not changed and I believe that we will see a break lower in due course, but like many other currencies, there is deep structural instability due to the unique and dire economic framework underpinning world markets and events. Many currency pairs ( including this one) are simply waiting for some stability and normality to return, and until it does, we are likely to see these patterns in many of the trading charts, whatever the timescales you trade.

There was little in the $undamental news today to affect the pair, and following a week of major economic news and announcements, it is a sign of the times that there has been virtually no change in direction of either the euro or the pound. All I can say is that once the breakout occurs it will be explosive and with considerable momentum behind it – so we will just have to wait.