The $uros to poundsr continued to push higher on Friday once again, closing the week and the session in a positive mood, with a narrow spread up bar and a deep lower shadow, suggesting that we will see a continuation of the bullish tone once again this week. With the closing price of the week ending well above all three moving averages, there seems to be little in the way to prevent us meeting our initial target of 0.93, which will probably be reached sooner rather than later, and certainly given a helping hand from BOE Governor Mervyn King who suggested last week that a weak pound would be ‘helpful’. Technically however we are now approaching some concerted resistance at the 0.9250 to 0.9450 which may provide a stubborn barrier to the short term move higher, and whilst this level may be penetrated and breached in due course, it may require more than one attempt to break through, so we may see a period of sideways price action for the euros to pounds pair at this level before moving higher once again. Should we clear the upper level of this consolidation then there is no reason to suppose that we will not see a run back up to re-test parity once again before the end of the year.

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