Price has hit the first lower warning line of the aqua/light blue ML set but more importantly i have (in hindsight since this swing low was made last Monday 1stMch10) drawn a new ML set in red (P0 1.4985, 9Feb09-P1 1.7042, 5Aug09 and P2 1.3654 11Mch09) which describes perfectly the recent low (up till now)...It may be one touch and then be discarded if we break back down through this level and i personally do not expect price to ever reach the red centre line but have drawn it to describe the point of the swing low only. If we rally from here we could see price up as far as 1.58 on the UMLP of the green ML set which ties in with the swing low (in the middle of the 'mountain' on 30 Dec09) that touches the red centre line.There is also market structure here with a poss MultiPivotLine. That price level represents a 50% Fib retracement from the 1.68 swing high in mid Nov09 and a 61.8%Fib RT from the more recent 1.6450 swing high on Jan 19th 2010...the last two major highs.
With the UK economy in a sad condition and the upcoming UK election it's sure the price will remain volatile and under pressure.
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