Yesterday’s spinning top candle brought to an end a consecutive run of 8 down days on the $uros to poundsrong> pair, but only just, with the low of the day bouncing off the consolidation support immediately below which will now prove critical if the downward trend is to continue any further.  This morning’s trading has suggested that, in the short term, it will as the high of the trading session has failed to breach the 40 day moving average with prices moving lower as a result.  The key to the longer term picture will be the support area as outlined above and for any sustained break lower we will need to see the 87 region breached some serious momentum behind the move.  However, should this area hold then we are in for a more sustained period of sideways consolidation over the next few weeks.

A variety of $undamental newsms on the economic calendar for both the euro and British pound which I have covered in more detail on the euro to dollar and pounds to dollars sites respectively.  With regard to today’s trading given the upcoming long weekend break I would suggest stepping aside until next week.

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