 Hello and welcome to CMC Markets and this quick look at euro sterling on Wednesday the 22nd of February now earlier this week at my weekly Monday webinar I talked about the importance of the 200 day moving average on the daily chart and euro sterling given the fact that since we traded above the 200 day moving average we've gradually traded higher sterling has got weaker the euro has got stronger. Now over the course of the past few days that is no longer the case last night we broke below the 200 day moving average for the first time since the end of 2015 and now the price action is trading below the 200 day moving average and could well be an early signal of further euro weakness and sterling strength. Before we get too carried away we need to take the lines off we've obviously taken out that trend line support from the lows that we saw in December 2016 and we are now trading below the 200 day moving average but I would inject a note of caution with respect to further declines ultimately this is a very negative outcome for the euro and does in the long run project the potential for further euro losses but I think we could well see a little bit of a short squeeze first. We have rebounded quite strongly off that 84 level there if we draw back in those lines quickly post them back in we can see that there is a little bit of a support area coming in around that 84 level and more importantly and I think this is very important on a short term basis it does look a little bit oversold given the declines we've seen over the past couple of days and more importantly on the four hour chart we've seen a significant potential bullish reversal on the four hour chart which would have appear to suggest that we could get a little bit of a short squeeze potentially all the way back to 84.70 initially given the fact that we do have a little bit of negative divergence and we do appear to have found a little bit of a crossover here which would suggest a little bit of sideways price action over the course of the next few trading sessions which in the short term could limit the downside for this particular down move and if we look at where euro sterling has been over the course of the past couple of weeks we are quite a bit lower from where we were at the beginning of February so before we get overly carried away with this move lower there is potential for a little bit of a short squeeze first but in the long term this is undoubtedly a negative development and I would expect over the course of the next few weeks to see a move back to these lows that we saw in 83 which then brings us on to the overall long term expectation of this potential head and shoulders reversal that I have been talking about over the course of the past few weeks. I think another reason that the potential for further sterling downside is fairly limited is also the performance of the pound against the dollar over the course of the past few days if we look at the way the pound has been performing it continues to find a very decent support in or around that 124 area. We haven't broken below it yet and I am a little bit concerned about the weakness of some of the rebounds that we've been seeing which might suggest that if we do break below 124 and able to hold below it we could see further sterling weakness but the longer we're able to hold above 124 then I think there is a decent likelihood we could test back towards these peaks that we saw at the beginning of February of 127 even more so as I still believe that this is the potential this has the potential to be a base building formation in the longer term. So that's it for this quick technical analysis update on the recent strength in the pound and the recent weakness that we've been seeing in the Euro.