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Pound Euro Chart Analysis 19 oct 2009

The sudden renewal of interest in the UK pound, was emphasised once again on Friday, as the $uros to poundsr broke lower once again, albeit with a narrow spread down bar, which merely confirmed the wide spread down candle of the previous day, which breached both the 9 and 14 day moving averages. The key of course will come later this week, as technically we need to see whether the strong support now in place at the 0.90 price level is sufficient to provide a platform from which the euros to pounds pair can rebuild, as seems likely. Indeed, this is already partially confirmed with the narrow spread bar of Friday failing to follow through on the strong selling on Thursday, suggesting that the market has already absorbed much of the selling pressure and is now preparing to move the market higher once again. However, with such a dramatic move we can take nothing for granted, and must therefore wait for a $echnicalnal to confirm the above $nalysisich may well arrive in the form of a deep hammer candle in due course, or a bullish engulfing signal.

With no signficiant items of $undamental newsthe economic calendar for either the UK or Europe (other than the Rightmove HPI index confirming that house prices in UK may be on the rise) today is very much a day for $echnical tradingthe pair try to find some direction from someone or somewhere!  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.