EUR/GBP: Shorts preferred for .7870 test
I prefer this pair in the short-term to others like EUR/CAD and EUR/AUD for the simple reason that cable has moved to some degree alongside the EUR/USD whilst AUD/USD and USD/CAD have moved slightly counter the main market trend. Hope that makes sense, but to an old cross trader like me, EUR/AUD and EUR/CAD feel a bit oversold in the short-term. I will wait on these and look for any intraday rallies to get short.
EUR/GBP on the other hand looks very heavy. If cable can reverse some of its earlier losses then we should easily see a test of recent cross lows at .7870 and even more, should that level break. I’m looking for EUR/USD to fall below 1.2850 and cable to recover back towards 1.6450, which would suggest the cross will then be trading near .7800.
Sounds like a plan at least, let’s see if it’s a good one!