EUR/GBP: Keen to be long but reassessing levels
Like I wrote last week, I am keen to be long EUR/GBP but having reassessed current momentum and activity, I feel that we may have another leg to the downside. I had hoped to see prices bottom out near .8840 and then start to bounce but the fact that prices seem to be consolidating below that level has me reconsidering.
I am looking lower, perhaps even towards .8600. Cable could trade up to 1.2650 and EUR/USD looks to have room on the downside towards 1.0850 and whilst it’s quite unlikely that both of these extremes would eventuate at the same time, we could get some version of this depending on Brexit headlines.
I will keep my powder dry for now and look for some headline driven dips to buy into.