The euro has dropped to its weakest against the pound since October 2008. From having seen almost parity to the pound, the reversal of fortunes has been a glacial change, but one that is visible over time. The pound has been strengthening in a very wide trend channel. What is worrying, and confirmed by the fanning out of the Bollinger bands, is this year's slide below the bottom of the inner, narrower trend channel on increasing volatility. This is expected to slow until April as the lower edge of the broad channel and the Fibonacci 61 per cent support at 72.5 to 72.75 pence are approached. That is just ahead of where the euro kicked off in January 1999 at 71.7 pence.
