(Bloomberg) -- There’s a technical pattern in the euro-pound pair that may bode well for sterling.
The cross’s 21-week moving average has fallen below its 89-week equivalent, an event that in the past ushered in average gains of about 2% for the pound over the course of almost three months.
Other than on Monday, this so-called death cross pattern happened just four times over the past decade, and the euro fell further on each occasion.
There’s more bad news for the euro. The currency is on the verge of closing against the pound below its 55-monthly moving average for the first time since May 2016.
The euro-pound cross dropped a fifth day on Monday, the longest losing run since August, to 84.08 pence as of 11:59 a.m. in London.
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