Forex Trading Analysis: Euros to Pounds
A very quiet day for the euros to pounds pair yesterday, and with virtually no fundamental news on the economic calendar either in Europe or in the UK, the pair drifted in the markets, not helped by the three day holiday in the Far East, which added to the thin trading volumes. As a result the euros to pounds pair pushed only marginally higher, ending the trading session with a narrow spread up bar and a small wick to the upside, with some currency traders taking the opportunity to bank some profits following the sharp rally of the last few days. Havong broken above the first deep resistance area in the o.88 to 0.90 price region, we can now concentrate on the next level which now awaits in the 0.92 to 0.9450 region, and with a solid platform now established below, we should see a run at this level in the next few days, although this could present a stubborn obstacle. With all three moving averages pointing sharply higher, and with ‘clear water’ now between yesterday’s close and the resistance above, then the next few days should be positive for the euros to pounds bulls, particularly with the Sterling suffering in the forex markets at present as once again it comes under pressure from the fundamental news. Technically we now have a clearly defined double bottom on the euros to pounds chart, which should set the pattern for the next few weeks as the pair consolidate and push higher, possible to re-test the 0.9450 price level in due course. Whether parity is still possible, only time will tell!
