EUR/USD/FXWW News/GBP crosses/Trade Ideas

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.

  1. 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.

  2. 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

  3. 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

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