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Euros To Pounds – February 10th 2009

Yesterday was another indecision day, to add to that on Friday, and  we now have two doji candles one after the other, indicating a possible short term reversal, or simply that the market is resting, before continuing in the downward trend. All the moving averages have crossed and are pointing lower, and as we are now in a clear area before reaching the next level of resistance at 0.8500 there is no reason to suppose that the move will not continue. If you are trading the pair intra day or scalping, then I would suggest staying out of the market today, until we receive a clear confirming signal that the short term bearish trend is still in place.

There is very little $undamental newsay, and like many other currency pairs at the moment we are seeing a sideways consolidation as the markets wait for news of the various bale out packages and a return to more orderly markets in the next few months.My long term target for the pair is around 0.8100, a position I expect to be reached by the middle of the year.

The short term outlook is sideways, the medium term is bearish and the long term is bearish.