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Collins: Why I’m selling euro sterling
Following a powerful decline on Friday, Alan Collins thinks it’s time to sell euro sterling. He says this move emphasises the negative tone which has been the backdrop for the last six months.
Over the last two days, Alan may have seen modest profit taking but he says it's the weakness of bounces, lower highs and a negative Keltner channel that keep the focus on the downside.
He warns that the UK unemployment figures - out on Wednesday – could complicate the immediate outlook. Last month's figures showed that unemployment fell by 99,000 in the three months to October to 2.39 million, while the unemployment rate was 7.4 percent - its lowest level since 2009.
Alan is now looking for the downside to extend in the coming days towards a key .8160 correction point (62 percent of the 2012-13 rise) but is also allowing room for a bounce towards .8250 - 64 area.
He says the risk is a clear move beyond .8286, Friday’s Marabuzo line.
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