EUR/GBP: Makes sense to try a small short trade
- EUR/USD selling likely to be very heavy ahead of 1.3400.
- GBP/USD bids look to be very solid near 1.5660.
- Plus I’m overall bearish on the cross and have been looking for selling opportunities.
I’ve taken a small short at .8535, let’s see how it develops.
Yes 100% agree.
Timing maybe off. The EUR will drop soon it’s just a matter of when. I think the perfect trade will be to jump on the EUR/AUD when the AUD finds a bottom.
Yep, timing definitely off.
i’m long this pair for more than a month and hoping to stay that way till it hits 0.88 or so… my thinking is EM sell off makes EZ a good place to park money. Euro is liquid and in times of caution investors like that. GBP is liquid too but EZ offers better rates. so my thinking goes with: “inflows to EZ will support EURGBP”
of course it also depends on your view regarding what will ECB do. i never believed in negative deposit rates, it was just a trick to keep rates low on the front side IMHO. also PMIs look bottoming which will write off a policy rate cut in the near term.
the thing is there will be pressure to ECB to do more, so i don’t know my analysis is solid but i’ll try to hold it as long as it doesn’t break below 0.8470
Thanks Ulas, good luck
Sold this pair last night at 0.8569 with tight stop 0.8593. Target 0.8515
You picked a better entry level than I did Ken, really not sure at moment but will stick with longer-term bear strategy. Only problm with this pair is that it moves so slowly and takes my attention away from better trading opportunities