The daily chart for the euros to pounds currency pair is now providing us with plenty of food for thought from a technical perspective, particularly over the last few days and it now appears that prices are beginning to break lower once again. Technically the first point to note is that over the last three weeks we have seem three failed attempts to break and hold above the 0.87 price point, and on each occasion, the daily price fell back to close in the trading session. Secondly, two of these candles were shooting stars, indicative of weakness and certainly bearish in tone, with the third candle on Monday being a long legged doji. Finally, all three candles failed to breach the intermediate resistance level in place at this level, suggesting that at some point we would see a reversal lower. However, before we conclude that the the euro pound pair is about to fall rapidly, we should also note that the three moving averages are still providing a degree of support and until these are firmly breached then we cannot assume that the bearish tone will remain firmly in place. Indeed to support this analysis we will need to see a break and hold below the strong support line now in place between the 84 and 85 price points. Should this occur in due course, then we can assume that the bearish sentiment has returned, and that we may see a much deeper move, possibly to re-test the 80 level in due course.

There is only one item of fundamental news on the economic calendar in Europe today, and I have covered this for you in more detail on the euro dollar site, whilst the fundamental news for the UK pound is covered on the pounds to dollars site.

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.