EUR/GBP: Cover partial shorts on sharp dips below .7800

The break below 1.2350 in EUR/USD did indeed increase bearish momentum in EUR/GBP, and with cable support levels still holding firm, being short the cross is a compelling trade.

Nevertheless, it’s unlikely that this pair will collapse in a straight line, it seldom trades this way, so covering on dips and re-selling on rallies makes very good sense. I’m looking to buy back 50/60% of my position on any sharp dip below .7800.

  1. Hi, Sean. Have you noted a figure no-touch trade in euro dips? It’s really hard to say if it was the structure, but I guess, that a bullish momentum over 2330 with successful testing the area 2305-07, gives more proves to the idea.

  2. I’d be surprised if there wasn’t some sort of optionality at every big fig in every major pair! It seems to be par for course. But China has been quiet these last 2 years and they were the only ones really capable of defending such structures imho

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