Guest Commentary: MarketVisionTV - That was just a Dress Rehearsal for Sterling!
* The rally to 82.20 previous was a typical corrective retracement.
* There is therefore one final spike to test the 80.65 low.
* We will reverse shorts on this drop for a major reversal.
Euro Sterling remains in a downtrend to challenge but hold the 80.65 low for now.
Indeed having reacted from the August 2010 low of 81.45 in an aggressive but seemingly corrective rally to 82.20 the previous low, it is now set to continue the (Clean as a ) 'Whistle analogy...an exact repeat of the price action since 85.05 but more pressingly... now January 2nd 2012.
This suggests that any rally now should be limited to the 81.85 region and certainly hold below 82.20 until Euro Sterling breaks down through 81.45 to the 80.65 region to end the near term downtrend.
We have exited longs from the 81.45 test and will sell more on any return to 81.85 in the very short term looking to reverse again on the next new low for a reversal back through 81.45 to encourage a much larger correction back through 82.20 to at least 82.75 and probably beyond. Stops 80.45.
Further videos or commentaries are available from www.marketvisiontv.com or @EdMatts on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.