Euros To Pounds - Daily Candle Chart 30 Oct 2009
An interesting end to the week for the euros to pounds pair which concluded with another down day (allbeit a small one) making it five in a row for the currency pair. Friday’s candle was the leased dramatic of the five, ending as a small doji candle cross, and indeed it is interesting to note that the spreads of each of the five days has narrowed on each subsequent day, which is often the first signal that a move is coming to an end and running out of steam. Indeed with the doji candle coupled with hammer candle of the day before, this would suggest much the same analysis and a possible turning point in progress. In addition and confirming this view, the current price level seems to have found some support from the congestion level immediately below, and should all these factors combine as expected, then we may see a bounce higher in the euros to pounds pair in the short term. The key to any longer term move higher will be a break and hold above the three moving averages which are currently weighing heavily, followed by a breach of the recent high at 0.93. Should this occur then we will be back on track towards our target of o.95 by the year end for the euros to pounds pair.
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