Picking the pound over the euro for a long time, it is interesting to see that the trend looks set to continue. The corrective bounce from this year's low at £0.7000 is complete with Friday's close below the bottom of an inverted flag pattern. The flag pole starts in January at £0.7900; the flag part is the A, B, C move since March, capped by a 50 per cent correction and moving averages. Measured targets lie at £0.6800, a level not seen since September 2007 when interbank lending started showing serious cracks. A second target is £0.6600, calculated as the height of the flag pole (9 pence) subtracted from the top of the flag (£0.7500).