The EUR/GBP pair fell hard during the session on Tuesday, breaking to a fresh, new low. While we have not gotten below the 0.79 handle yet, I do believe that we are about to do so, and that should open the door too much lower pricing. Ultimately, and other thing that I look at is the fact that the British pound had a fairly strong showing, while the Euro struggled during the day.

The market close at the very lows of the range for the session, and that of course is a negative sign as well as it should mean continuation of the move. At this point in time, any rally would be treated suspiciously, and I would be looking to sell the first signs of resistance, especially that there the 0.80 handle. That area was one significant support, and the idea of it being resistance is the very essence of support and resistance when it comes to technical analysis.

Never fight the trend.

When you have a trend that’s this well-defined, fighting it is an exercise in futility. I believe that rallies will simply offer value as far as the British pound is concerned, and that there are plenty of people willing to head this market again and again to the downside. In fact, I have no interest in buying this market until we clear the 0.82 handle, something that I do not anticipate seen anytime soon, as the trend has been so strong and that we are so below that region at the moment.

I believe that we are heading to the 0.7750 level first, and then ultimately the 0.75 handle, which of course is a large, round, psychologically significant number and is also important on the longer-term charts, such as the monthly timeframe. With that, I am very bearish of this market, and have no interest in going long under any circumstances, save for the above dimension move to the 0.82 handle, which by at that time I suspect that we would’ve had several headlines that would have put the trend in serious doubt to begin with.


Related Articles
  1. Insurance

    How to Choose Permanent Life Insurance Policies

    When does it makes sense to buy a guaranteed rather than a non-guaranteed life insurance policy?
  2. Credit & Loans

    The Best Alternatives to Payday Loans

    There are better ways to handle a financial emergency between paychecks, including the 12 described here.
  3. Retirement

    Should You Pay Someone to Create a Retirement Plan?

    Nobody likes to pay for help, but it may be necessary to shell out the extra cash for proper retirement planning help.
  4. Mutual Funds & ETFs

    The Top ETFs For a Fast Recovery After a Recession

    Recession and recovery cycles are imminent in the markets. Here are the ETFs, which provide the best performance for a fast recovery after a recession.
  5. Retirement

    Going Back to Mexico to Retire: A How-to Guide

    Looking to spend your post-working days in your own or your parents’ birthplace? Here is what you need to know to plan your move.
  6. Stock Analysis

    Ford Vs. Chevy: Comparing Business Models and Strategies

    Learn about competing American car companies Ford and Chevrolet and how the two businesses differ in their approaches to the U.S. car market.
  7. Professionals

    Accounting Research Manager: Job Description & Average Salary

    Learn about the average salary of an accounting research manager as well as the necessary skills, experience and education, and licenses to hold this position.
  8. Retirement

    Sometimes It Pays to Borrow from Your 401(k)

    401(k) loans have been demonized, but they're often the most beneficial source of cash.
  9. Stock Analysis

    If You Had Invested Right After Disney's IPO

    Discover how the Walt Disney Company has been entertaining people and taking care of its shareholders since debuting on the NYSE in 1957.
  10. Professionals

    Common Interview Questions for e-Marketing Specialists

    Identify the questions most likely to be asked in e-marketing specialist interviews, and learn the best responses to set yourself apart from the competition.
  1. How does my spousal Social Security benefit work?

    If you have never worked or paid Social Security taxes, you will not be eligible to receive Social Security retirement benefits ... Read Full Answer >>
  2. Why are most airplane tickets nonrefundable?

    Airplane tickets are generally nonrefundable, because the majority of tickets sold are discount tickets. In exchange for ... Read Full Answer >>
  3. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  4. Does Netspend accept wire transfers?

    NetSpend accepts some types of wire transfers to add money to the prepaid debit cards it issues to its customers. There are ... Read Full Answer >>
  5. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  6. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>

You May Also Like

Trading Center