EUR/GBP: Happy to trade either side at the moment
- The overall bias is still bearish but the market is caught short in thinning August markets, hence the rally at the end of last week;
- This pair has fallen a long way in a short space of time, so relief rallies are to be expected;
- I’m quite happy to try trading 50 pip moves either side of the current .7980 level, although I do maintain my bearish bias.
August is also the traditional holiday month in Germany and the UK, so we can expect volumes to be reduced even further. That usually means long periods of nothingness followed by straight lines silliness in either direction. Oh to have a clean view of the big Prime Broker’s order book!