- 99% of the market is now bearish EUR/GBP which does suggest that we may be in for a relief rally;
- We are hearing increasingly loud rumblings out of Germany that they will seek to contain any extreme ECB easing measures;
- Option barriers are reported at .8050, and again at .8000;
- The cable market is long and we could see a squeeze lower especially if 1.6900/20 continues to hold topside;
- EUR/USD looks and feels very heavy but the market has been unable to break below the 200-dma at 1.3635 despite numerous attempts.
There is some excellent risk-reward in buying EUR/GBP near .8060 with stops below .8040 and .7995 targeting .8160 and possibly higher.