My final play of this 3 pronged trade is to sell Euro/Sterling.
Sterling has begun to outperform the Euro relative to the Dollar once more. Every time there is a bad bit of news recently the Euro is hit more than Sterling, which is dragging the rate lower.
Technically, having broken below the support at £0.8207, EUR/GBP is also falling away again and should come back to test the key low at £0.8156. Momentum indicators are falling over again along with moving averages.
I have placed my stop at £0.8241 (41 pips) which is above the resistance band around £0.8240.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.