EUR/GBP trade developing nicely
The potential base at the 38.2% Fibo near .8005 coupled with a possible basing pattern on the short-term charts (see members section) convinced me to go long of this pair yesterday. We are also coming to that time of the month when the Bundesbank usually buys EUR/GBP (up to 1billion) in the open market and I’m hoping this is the case again this month. Deutsche Bank analysts reiterated their call that the cross could trade to .8500 by year’s end (a very bullish call from normally conservative analysts) and this has given me a bit more confidence. My initial target is at .8095 and I expect this pair to now stay above .8015.