Yesterday’s wide spread down bar of almost 100 pips provided much needed momentum to the bearish tone for the $uros to poundsrong> pair, and this has continued through into trading during the London session, and more significantly is now deep in the congestion area between 0.87 and 0.90.  With all three moving averages pointing lower and more importantly the 40 day having crossed the 9 day we could not have a stronger bearish picture, and the only issue for the longer term is whether the support level at 0.87 will remain intact.  If not we will definitely see a move lower down in the medium term.  After such a long down trend we may see a short squeeze in the next few days so watch for any bounce higher and treat this as an opportunity to enter new selling positions anywhere between 0.89 and .90 using the hourly charts for a suitable entry point.

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