Alan Collins from 3c Analysis explains the three reasons why he is looking to sell EURGBP. He notes that although the market has failed to follow through on any downward activity after the major decline two weeks ago, there is enough evidence in the current marketplace to support a move lower.

Alan is basing his strategy on the fact that:

1.       Rallies are capped by the Marabuzo line formed on June 12th

2.       The 13 day moving average is providing resistance

3.       The daily Keltner channel is trending negatively

The pound fell on Tuesday after Bank of England Governor Mark Carney appeared less aggressive on interest rate increases. The comments were slightly less hawkish than typically expected from Carney. Meanwhile the euro remained unaffected by weak data from the German IFO survey. Combined this information caused the euro to rise against the pound.

Today however given the indicators of a downward shift, Alan is targeting EUR .7959, EUR .7989, and EUR.7942. He cautions that a move above EUR .8050 would negate this trade.

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