As outlined in yesterday’s market commentary and subsequently by the down bar which closed below the 9 day moving average, it now seems as though we are in for a period of sideways consolidation for the $uros to poundsr and indeed this morning’s higher has so far negated the down bar of yesterday.   With no $undamental newsthe economic calendar for either the Euro or the British Pound it is likely this pair will remain range-bound for a while oscillating between 86.25 and 84.  Whilst the bias is still bearish with the 40 moving average pointing lower, we need to wait for a sustained break below 0.84 before building any further medium term positions to the downside.  Any breakout to the upside is likely to be a further short squeeze rather than any longer term reversal as only a break and hold above 87.50 would justify any change in sentiment.

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