The euros vs pounds pair continues to grind its way lower following its failure to breach the 0.87 resistance level outlined in last week’s market commentary which finally proved to be the straw that broke the camel’s back.  With prices now below all three moving averages and with the 9 day now crossing below the 40 day once again it is only a matter of time before we see a re-test of the 0.84 support.  This view is reinforced by the weekly chart where last week’s wide spread down bar ploughed both the 9 and 14 week moving averages finishing below all three with prices moving inexorably towards the 0.80 support region.  However, any break below here will take a considerable amount of momentum and personally I believe this scenario is unlikely for some considerable time.  My trading suggestion for this pair is to look to sell the Euro using the hourly charts to find suitable entry points and looking to target the 0.84 price target.

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