EUR/GBP: Has scope for another 600 pips rise
EUR/USD is trading bullishly and buying any deep dips seems like a very logical play. It’s certainly possible that we could get dips back to 1.3350 but a move to 1.4200 in coming weeks/months is starting to feel inevitable.
Cable on the other hand is trading bearishly and another support level was taken out overnight. It’s still in an overall sideways trend on the weekly chart but certainly has scope for a fall towards 1.5200.
If both of these events were to happen simultaneously, which seems reasonably likely given the current trend, then the EUR/GBP will be trading near .9350. It might well be the ‘trade of the year’ to sell at that level, but it does look like we will get there.