With all three moving averages pointing sharply lower for the $uros to poundsr, Friday’s indecisive candle provided only a momentary respite before prices continued lower in today’s trading session, with our initial price target of 0.80 now firmly on the horizon.  A check on the weekly chart confirms this bearish momentum with the high of the week failing to breach the 9 week moving average and with the close of the week finishing well below the 40 week moving average and with both the 9 and 14 week moving averages turning sharply lower.  With last week’s candle having breached the 0.855 region the next major level of resistance is that at the 0.80 area, a deep and significant platform which could provide a stiff test to any deeper move for the pair having been created virtually over a 12 month period.  My suggestion for trading this pair is of last week which is simply to build short positions using the hourly chart to find a suitable entry point and to look for an initial target for the trade of just above the 0.80 price level.

With no items of $undamental newsthe economic calendar for either UK or the Eurozone other than various press reports on the German banking system which appears to be seizing up once again, UK interest rates and a CBI report on the recession we can expect price action to drift lower for the remainder of the day.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.