Home » Euros to Pounds Daily Chart » Euros To Pounds – Daily Candle Chart 10th March

Euros To Pounds – Daily Candle Chart 10th March

Yesterday’s we finally saw a breakout from the pennant pattern of the last few weeks in the daily candle chart, which I have to say caught me by surprise.  Not so much that the breakout occurred, as I have been suggesting for some time but that it actually broke to the upside as I must confess I was expecting a break to the downside.   This highlights one of hte major benefits of the straddle options trade which I have suggested to you before as it is a directionless trade, in other words, you either know nor care which direction the price break occurs.  In this case if you have a straddle option in place you should not be looking at some profitable positions with the volatility that has accompanied the move.

Whether this bullish momentum continues is questionable as I still believe the Euro is overbought against the pound but if you are feeling particularly brave I would suggest small long positions based on yesterday’s breakout with a stop loss somewhere below the opening price of Monday, in other words below 0.90.  It will be interesting to see whether this breakout has sufficient momentum to clear the next target which is 94.50 and with all the moving averages now turning higher there is a fair probability that this may happen.

The main numbers out this morning for the British Pound were released by the National Statistics Office and confirmed further falls in industrial output, down -2.9% against a forecast of -1.5% and a previous of -1.9%.  With manufacturing making up over 80% of total industrial production this tends to be an important figure and is considered a leading indicator of the economic state of the country and there was an appropriate reaction in this currency pair.

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