Guest Commentary: What will be the Trigger for Sterling Violence?
Euro Sterling continues to follow the 'Whistle Analogy' and is therefore set to resume the downtrend soon.
* But first a spike is needed to get the market long and wrong.
* Just as it did at 8505!
* 8100 should prove a pivotal level.
Euro Sterling remains within consolidation an updrift from the 7955 low incredibly similar to the price action of last February.
Given the likely end of an interim triangle at 8010-20 (in Elliott terms a running B wave triangle) this places Euro Sterling the equivalent of February 20th just prior to an aggressive but short-lived spike to 82.00-20 analogous to the 8505 high.
Although smack in the middle of the range, 8100 should now prove pivotal as a rally through this level should be sustained until 8160 is broken.
As highlighted we bought 8020 with stops now at 8005 looking to cover and sell new highs against the previous 8220 low for a break back down through pivotal 8100 to lose 8010 and attack the 7955 low en route 7785. Stops should be safe 8250 short term but daily trend resistance at 8310 is key.
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.